Marketing Package For 50 West Third Street, Mount Carmel PA

PROPERTY INFORMATION PACKAGE
PROPERTY 118
50 WEST THIRD STREET, MOUNT CARMEL, PA
TABLE OF CONTENTS
APPRAISAL
ENVIRONMENTAL, PHASE 1
ENVIRONMENTAL, PHASE 2
PCA (PROPERTY CONDITION ASSEMENT)
TITLE
SURVEY
ZONING
TITLE COMMITMENT
LEASE AGREEMENT
RENT ROLLS
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COMPLETE APPRAISAL
OF REAL PROPERTY
Mount Carmel Office

50 West 3rd Street
Mount Carmel Borough, Northumberland County, Pennsylvania
IN A SELF-CONTAINED APPRAISAL REPORT
As of June 17, 2004
Prepared For:
Lehman Brothers Holdings, Inc.
399 Park Avenue, 8th Floor
New York, N.Y. 10022
Prepared By:
Cushman & Wakefield of Philadelphia, Inc.
Valuation Services
Bell Atlantic Tower
1717 Arch Street, 30th Floor
Philadelphia, PA 19103
C&W File ID: 04-9157-11
VALUATION SERVICES
Cushman & Wakefield of Pennsylvania,
Inc.
Bell Atlantic Tower
1717 Arch Street, 30th Floor
Philadelphia, PA 19103
215-963-4125 Tel
215-569-8657 fax
dan_rudderow@cushwake.com
June 18, 2004
Mr. Yaniv Blumenfeld

Vice President
New York, N.Y. 10022
Re: Complete Appraisal of Real Property

In a Self-Contained Report
Mount Carmel Office
50 West 3rd Street
Mount Carmel Borough, Northumberland County, Pennsylvania 17851
C&W File ID: 04-9157-11
Dear Mr. Blumenfeld:

In fulfillment of our agreement as outlined in the Letter of Engagement, we are pleased to
transmit our complete appraisal report on the property referenced above.
The value opinion reported below is qualified by certain assumptions, limiting conditions,
certifications, and definitions, which are set forth in the report. We particularly call your attention
to the following extraordinary assumptions and hypothetical conditions:
Extraordinary Assumptions The appraisal employs the following extraordinary assumptions:
1) The annual Base Rent for the Wachovia Bank space over the
first 5 years of the lease is assumed to be $5.92 per square foot
increasing 1.5 percent every 5 years over the 20 year initial lease
term.
2) We have assumed the 20 year Wachovia Bank lease
commences as of our effective date of valuation and that none of
the six 5 year renewal options are exercised as it is uncertain as
to the Bank’s needs in 20 years.
3) The building square footage used to estimate market value is
based upon information supplied to us by the buyer. We have
assumed that this figure is an accurate reflection of the subject
building's size.
Hypothetical Conditions: This appraisal employs the following hypothetical condition:
1) As the subject property is leased, the “As Dark” Value
assumes the entire property is vacant and available for lease at
current market terms.
Cushman & Wakefield, Inc.
June 18, 2004
Page 2
This Report has been prepared to assist in the determination of whether to make a loan
evidenced by a note (the “Mortgage Note”) secured by the property referred to in the Report.
This Report may be relied upon by: (i) Lehman Brothers Holdings, Inc. (“Lehman”); (ii) the
trustee of a trust created in connection with a securitization which includes the Mortgage Note or
an interest therein; and (iii) any other purchaser or assignee of the Mortgage Note or an interest
therein, upon such purchaser’s or assignee’s written acceptance of and consent to the terms of
this reliance letter. This Report may be, for information purposes only: (i) provided to any
potential purchaser or assignee of the Mortgage Note or an interest therein; (ii) provided to any
rating agency, rating securities which represent a beneficial ownership interest in a trust fund
that consists of mortgage loans including the Mortgage Note or an interest therein; and (iii)
referred to, quoted in or included with materials offering for sale the Mortgage Note or an
interest therein. There are no third party beneficiaries (intended or unintended) to this Report,
except as expressly stated herein. This Report speaks only as of its date.
This report may not be distributed or relied upon by any other persons or entities without the
written permission of Cushman & Wakefield, Inc.
This appraisal report has been prepared in accordance with our interpretation of Title XI of the
Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), and the
Uniform Standards of Professional Appraisal Practice (USPAP), including the Competency
Provision.
The property was inspected by and the report was prepared by Daniel C. Rudderow under the
supervision of Gerald B. McNamara, MAI.
This appraisal employs all three typical approaches to value: the Cost Approach, the Sales
Comparison Approach and the Income Capitalization Approach. Based on our analysis and
knowledge of the subject property type and relevant investor profiles, it is our opinion that all
approaches would be considered meaningful and applicable in developing a credible value
conclusion.
Based on our Complete Appraisal as defined by the Uniform Standards of Professional
Appraisal Practice, we have developed an opinion that the market value of the Leased Fee
estate of the referenced property, subject to the assumptions and limiting conditions,
certifications, extraordinary and hypothetical conditions, if any, and definitions, “as is” on June
17, 2004 is:
FIVE HUNDRED FIFTY THOUSAND DOLLARS
$550,000
Cushman & Wakefield, Inc.
June 18, 2004
Page 3
In addition, we have estimated the “As Dark” Value of the Fee Simple Interest as of June 17,
2004 at:
ONE HUNDRED FIFTY THOUSAND DOLLARS
$150,000
Based upon transactions that have occurred in the marketplace as well as discussions with
knowledgeable market participants, exposure time would have required approximately nine (9)
months. Furthermore, a marketing period of approximately nine (9) months will be reasonable
for properties such as the subject.
This letter is invalid as an opinion of value if detached from the report, which contains the text,
exhibits, and Addenda.
Respectfully submitted,
CUSHMAN & WAKEFIELD OF PENNSYLVANIA, INC.
Daniel C. Rudderow Gerald B. McNamara, MAI

Appraiser Managing Director
PA Certified General Appraiser PA Certified General Appraiser
License No. GA003341 License No. GA000267L
dan_rudderow@cushwake.com
215-963-4125 Office Direct
215-569-8657 Fax
SUMMARY OF SALIENT FACTS
Common Property Name: Mount Carmel Office

Location: 50 West 3rd Street
Mount Carmel Borough, Pennsylvania 17851
The subject property is situated at the southeast
corner of West 3rd Street and South Maple Street in
Mount Carmel Borough, Northumberland County,
Pennsylvania. In addition, the subject property
contains a parking lot situated at the northeast
corner of the same intersection.
Property Description: The property consists of a 1-building, 3-story bank
branch/office building containing 14,000 square feet
of net rentable area on a 0.379-acre parcel of land.
Assessor's Parcel Number: 7-2-4-104 and 4-2-1-246
Interest Appraised: Leased Fee and Fee Simple
Date of Value: June 17, 2004
Date of Inspection: June 18, 2004
Ownership: First Liberty Bank
Occupancy: The subject property is 64.29 percent occupied by
Wachovia.
Current Property Taxes

Total Assessment: $166,225
2004/2005 Property Taxes: $22,000
Highest and Best Use

If Vacant: Commercial development
As Improved: As it is currently developed
Site & Improvements

Zoning: C-2, Commercial
Land Area: 0.3788 acres
16,502 square feet
Number of Stories: 3
Year Built: 1965
Gross Building Area: 14,000 square feet
Net Rentable Area: 14,000 square feet
Parking Type: Surface
Number of Parking Spaces: 13
VALUATION SERVICES
VALUE INDICATORS
Land Value:
Indicated Value: $50,000
Per Square Foot: $3.03
Per Acre: $131,984
Cost Approach:
Per Square Foot (NRA): $42.86
Sales Comparison Approach:

Income Capitalization Approach
Discounted Cash Flow

Projection Period: 22 years
Holding Period: 21 years
Terminal Capitalization Rate: 9.5%
Internal Rate of Return: 9.00%
Direct Capitalization
Net Operating Income: $68,755
Capitalization Rate: 8.50%
Reconciled Value: $550,000

FINAL VALUE CONCLUSION

Leased Fee: $550,000
Exposure Time: 9 months
Marketing Time: 9 months
VALUATION SERVICES
FINAL VALUE CONCLUSION

“As Dark” Fee Simple Interest: $150,000
INSURABLE VALUE CONCLUSION $2,000,000
Extraordinary Assumptions and Hypothetical Conditions
Extraordinary Assumptions
An extraordinary assumption is defined by the Uniform Standards of Professional Appraisal
Practice as “an assumption, directly related to a specific assignment, which, if found to be false,
could alter the appraiser’s opinions or conclusions. Extraordinary assumptions presume as fact
otherwise uncertain information about physical, legal or economic characteristics of the subject
property; or about conditions external to the property, such as market conditions or trends; or
about the integrity of data used in an analysis.”
The appraisal employs the following extraordinary assumptions:
1) The annual Base Rent for the Wachovia Bank space over the first 5 years of the lease is
assumed to be $5.92 per square foot increasing 1.5 percent every 5 years over the 20 year
initial lease term.
2) We have assumed the 20 year Wachovia Bank lease commences as of our effective date of
valuation and that none of the six 5 year renewal options are exercised as it is uncertain as to
the Bank’s needs in 20 years.
3) The building square footage used to estimate market value is based upon information
supplied to us by the buyer. We have assumed that this figure is an accurate reflection of the
subject building's size.
Hypothetical Conditions
A hypothetical condition is defined by the Uniform Standards of Professional Appraisal Practice
as “that which is contrary to what exists but is supposed for the purpose of analysis.
Hypothetical conditions assume conditions contrary to known facts about physical, legal, or
economic characteristics of the subject property; or about conditions external to the property,
such as market conditions or trends; or about the integrity of data used in an analysis.”
This appraisal employs the following hypothetical condition:
1) As the subject property is leased, the "As Dark" Value assumes the entire property is vacant
and available for lease at current market terms.
VALUATION SERVICES
SUBJECT PHOTOGRAPHS
Front elevation of subject property
Additional view of subject property
VALUATION SERVICES
SUBJECT PHOTOGRAPHS
View depicting subject’s parking lot
View depicting first floor Wachovia space
VALUATION SERVICES
SUBJECT PHOTOGRAPHS
View depicting second floor office space
View depicting third floor shell space
VALUATION SERVICES
SUBJECT PHOTOGRAPHS
Easterly view along West 3rd Street
Westerly view along West 3rd Street
VALUATION SERVICES
TABLE OF CONTENTS
INTRODUCTION ............................................................................................. 1
REGIONAL MAP ............................................................................................. 5
Regional Analys is ......................................................................................... 6
LOCAL AREA MAP ......................................................................................... 8
LOCAL AREA ANALYSIS ................................................................................ 9
SITE DESCRIPT ION...................................................................................... 11
IMPR OVEM EN TS DESCRIPT ION .................................................................... 12
REAL PROPERTY TAXES AND ASSESSMENTS .............................................. 15
ZONING ....................................................................................................... 16
HIGHEST AND BEST USE ............................................................................. 17
VALUATION PROCESS ................................................................................. 19
LAND VA LUATION ....................................................................................... 21
COST APPROACH ........................................................................................ 26
SALES COMPARISON APPROACH ................................................................ 29
INCOME CAPITALIZATION APPROACH ......................................................... 35
RECONCILIATION AND FINAL VALUE OPIN ION ............................................. 50
“AS DARK” VALUE ...................................................................................... 51
INSURABLE VALUE ..................................................................................... 54
A S SUM PT IO N S A N D L I M IT ING C O N D I T IO N S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5
CERTIFICA T I O N O F AP PRAI SAL .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
ADDENDA ................................................................................................... 59
VALUATION SERVICES
INTRODUCTION
Identification of Property
Common Property Name: Mount Carmel Office
17851
The subject property is situated at the southeast corner of West
3rd Street and South Maple Street in Mount Carmel Borough,
Northumberland County, Pennsylvania. In addition, the subject
property contains a parking lot situated at the northeast corner of
the same intersection.
Property Description: The property consists of a 1-building, 3-story bank branch/office
building containing 14,000 square feet of net rentable area on a
0.379-acre parcel of land.
Assessor's Parcel Number: 7-2-4-104 and 4-2-1-246
Property Ownership and Recent History

Current Ownership: First Liberty Bank
Sale History: The subject property is part of a portfolio of 150 properties that
are being purchased by First States Investors 3300, LLC from
Wachovia Bank, National Association. To the best of our
knowledge, there have been no other arms-length transaction
involving the subject property over the past three years.
Wachovia will lease back all, a portion or none of the space in
each building for a term of 20 years. The contract of sale is dated
May 10, 2004. The aggregate sales price is reportedly
$546,386,107 and an allocation of the total price to each asset
was not provided.
Intended Use and Users of the Appraisal

This appraisal was prepared for Lehman Brothers Holdings, Inc. and is to be used in connection
with potential acquisition financing. All other uses and users are unintended, unless specifically
stated in the letter of transmittal.
Dates of Inspection and Valuation

The value conclusion reported herein is as of June 17, 2004. The property was inspected on
June 18, 2004 by Daniel C. Rudderow. Gerald B. McNamara, MAI has reviewed the report but
did not inspect the property.
Property Rights Appraised

Leased Fee and Fee Simple Interests
VALUATION SERVICES 1
INTRODUCTION
Scope of the Appraisal

This is a complete appraisal presented in a self-contained report, intended to comply with the
reporting requirements set forth under the Uniform Standards of Professional Appraisal Practice
(USPAP).
In addition, the report was also prepared to conform to the requirements of the Code of
Professional Ethics of the Appraisal Institute and the Financial Institutions Reform, Recovery
and Enforcement Act of 1989 (FIRREA), Title XI Regulations.
In preparation of this appraisal, we investigated numerous vacant land and improved sales in
the subject’s market, analyzed rental data, and considered the input of buyers, sellers, brokers,
property developers and public officials. Additionally, we investigated the general regional
economy as well as the specifics of the local area of the subject.
The scope of this appraisal required collecting primary and secondary data relative to the subject
property. The depth of the analysis is intended to be appropriate in relation to the significance of
the appraisal issues as presented herein. The data have been analyzed and confirmed with
sources believed to be reliable, whenever possible, leading to the value conclusions set forth in
this report. In the context of completing this report, we have made a physical inspection of the
subject property. The valuation process involved utilizing generally accepted market-derived
methods and procedures considered appropriate to the assignment.
conclusion.
Definitions of Value, Interest Appraised and Other Terms

The following definitions of pertinent terms are taken from the Dictionary of Real Estate
Appraisal, published by the Appraisal Institute, as well as other sources.
Market Value
Market value is one of the central concepts of the appraisal practice. Market value is
differentiated from other types of value in that it is created by the collective patterns
of the market. A current economic definition agreed upon by agencies that regulate
federal financial institutions in the United States of America follows, taken from the
glossary of the Uniform Standards of Professional Appraisal Practice of The
Appraisal Foundation:
The most probable price which a property should bring in a competitive and open
market under all conditions requisite to a fair sale, the buyer and seller, each acting
prudently and knowledgeably, and assuming the price is not affected by undue
stimulus. Implicit in this definition is the consummation of a sale as of a specified
date and the passing of title from seller to buyer under conditions whereby:
1. Buyer and seller are typically motivated;
2. Both parties are well informed or well advised, and acting in what they consider
their own best interests;
3. A reasonable time is allowed for exposure in the open market;
INTRODUCTION
4. Payment is made in terms of cash in US dollars or in terms of financial

arrangements comparable thereto; and
5. The price represents the normal consideration for the property sold unaffected
by special or creative financing or sales concessions granted by anyone
associated with the sale.
“As Dark” Value

The market value assuming the property is entirely vacant and available for lease at market
terms. This value factors in the cost of lease-up which includes rent loss, tenant improvements,
leasing commissions and holding costs over the absorption period.
Fee Simple Estate

Absolute ownership unencumbered by any other interest or estate, subject to the
limitations imposed by the governmental powers of taxation, eminent domain, police
power, and escheat.
Leased Fee Estate

An ownership interest held by a landlord with the rights of use and occupancy
conveyed by lease to others. The rights of the lessor (the leased fee owner) and the
leased fee are specified by contract terms contained within the lease.
Market Rent
The rental income that a property would most probably command on the open
market, indicated by the current rents paid and asked for comparable space as of
the date of appraisal.
Cash Equivalent
A price expressed in terms of cash, as distinguished from a price expressed totally
or partly in terms of the face amounts of notes or other securities that cannot be sold
at their face amounts.
Exposure Time and Marketing Time
Exposure Time
Under Paragraph 3 of the Definition of Market Value, the value opinion presumes
that "A reasonable time is allowed for exposure in the open market". Exposure time
is defined as the length of time the property interest being appraised would have
been offered on the market prior to the hypothetical consummation of a sale at the
market value on the effective date of the appraisal. Exposure time is presumed to
precede the effective date of the appraisal.
The reasonable exposure period is a function of price, time and use. It is not an isolated opinion
of time alone. Exposure time is different for various types of real estate and under various
market conditions. As noted above, exposure time is always presumed to precede the effective
date of appraisal. It is the length of time the property would have been offered prior to a
hypothetical market value sale on the effective date of appraisal. It is a retrospective opinion
based on an analysis of recent past events, assuming a competitive and open market. It
INTRODUCTION
assumes not only adequate, sufficient and reasonable time but adequate, sufficient and a
reasonable marketing effort. Exposure time and conclusion of value are therefore interrelated.
Based on our review of national investor surveys, discussions with market participants and
information gathered during the sales verification process, a reasonable exposure time for the
subject property at the value concluded within this report would have been approximately nine
(9) months. This assumes an active and professional marketing plan would have been
employed by the current owner.
Marketing Time
Marketing time is an opinion of the time that might be required to sell a real property
interest at the appraised value. Marketing time is presumed to start on the effective
date of the appraisal and take place subsequent to the effective date of the
appraisal. The opinion of marketing time uses some of the same data analyzed in
the process of estimating reasonable exposure time and it is not intended to be a
prediction of a date of sale.
We believe, based on the assumptions employed in our analysis, as well as our selection of
investment parameters for the subject, that our value conclusion represents a price achievable
within nine (9) months.
Legal Description
The subject site is identified by Northumberland County as Tax Parcel Numbers 7-2-4-104 and
4-2-1-246. A legal description can be found in the Addenda to this report.
REGIONAL MAP
REGIONAL ANALYSIS
Northumberland County
Northumberland County was created in 1772, from parts of Lancaster, Cumberland, Berks,
Bedford and Northampton Counties. Sunbury, the county seat, was laid out in 1772,
incorporated as a borough in 1797, and became a city in 1921. Containing an area of 460
square miles, Northumberland County is located 50± miles north of Harrisburg along the
Susquehanna River in the heart of the Susquehanna Valley. It is bordered by Montour and
Columbia Counties to the north, Schuylkill County to the east, Union and Snyder counties to
the west and Dauphin County to the south.
Population
According to the most recent federal census, Northumberland County had a 2000 population
of 94,556 persons, a decrease of 2.3 percent decrease from the 1990 figure of 96,771. In
addition, this represents a population density of approximately 210 persons per square mile.
Employment
Historically, Northumberland County was best known as a coal mining area, with the various
communities here developed along the coal veins. Although the county continues to rank
highly in anthracite coal production in Pennsylvania, its importance has diminished in recent
years. Now, the major economic activities are manufacturing (textiles and transportation
equipment), agriculture (field crops and poultry), in addition to anthracite coal mining.
According to the Pennsylvania Department of Labor and Industry, the January 2004
unemployment rate in Northumberland County was 8.1 percent. This figure is higher than
the 6.1 percent for Commonwealth of Pennsylvania as a whole. At the same time, the
unemployment rate for the United States was placed at 6.3 percent.
The median effective household buying income or disposable income after federal taxes in
Northumberland County is currently estimated to be $28,845. This is below the statewide
median level of $36,933. It is estimated that 28.8 percent of the 39,100 households have an
effective buying income under $35,000 annually, while 19.7 percent of households have
yearly EBI in excess of $50,000.
Linkages
Northumberland County benefits from an adequate transportation system linking the region
to the rest of the nation. Northumberland County is within 250 miles of six of the nation's top
25 markets including New York City, Philadelphia, Washington, D.C., Baltimore, Pittsburgh
and Newark. Sunbury, the county seat, is a major hub for motor traffic in this region. PA
Routes 61 and 209 traverse east and west throughout the county, while PA State Route
225, 15 and 11 are the primary north/south thoroughfares. Additional major highways found
within the county include PA State Routes 147, 45, 522 and 35.
REGIONAL ANALYSIS
Cultural, Educational, Recreational Resources

Educational resources abound in Northumberland County, with seven colleges and
universities located within a one hour’s drive. Northumberland's most visible attributes are
its waterways and forests. The West Branch of the Susquehanna is recognized as a superb
bass fishery while smaller streams, like White Deer and Penn's Creek are excellent trout
streams. Boating on the Susquehanna has become popular and the Fish Commission has
developed access ramps at many locations along the river. The impoundment of the north
and west branches of the Susquehanna at Sunbury is a busy boating area complete with
marina and boat rentals.
Conclusion
Northumberland County is going through a restructuring period as a result of the decline of
coal as an energy source. While the population is expected to remain basically stable over
the near term, unemployment is high relative to state and national averages. However, the
economic development agencies throughout the county are committed to attract new
investments. Highway transportation is good and utilities are adequate for many
development opportunities. Additionally, there are adequate recreational and educational
opportunities in the area. It is our conclusion that the long-term trends of the region are
stable.
LOCAL AREA MAP
LOCAL AREA ANALYSIS
Location
The property is located in Mount Carmel Borough, Northumberland County, Pennsylvania.
Mount Carmel Borough is an older municipality situated approximately 14.0 miles south of
Bloomsburg, 25.0 miles southwest of Hazleton, 40.0 miles southwest of Wilkes-Barre and 45.0
miles southeast of Williamsport. In addition, the Borough is virtually surrounded by Mount
Carmel Township. All told, the Borough contains a land area of 0.7 square miles.
Access
Access to the local market area is facilitated by Route 61. This roadway links with the Sunbury
area to the west and Interstate 81 to the east. Interstate 81 travels in a generally
northeast/southwest direction, linking with the Wilkes-Barre area and Interstate 80 to the north
and Interstate 78 to the south. Interstate 80 provides access to Stroudsburg and the New York
metropolitan area to the east and various towns in Pennsylvania to the west. In addition,
Interstate 476 which connects with Interstate 80 to the east, provides access to the Philadelphia
metropolitan area to the south. Interstate 78, which also links with Interstate 476, connects with
the Harrisburg area to the southwest, as well as the Allentown area to the east. The balance of
roadways serving the immediate area are primarily local roadways, serving the needs of the
local populace.
Nearby and Adjacent Uses

The subject property is situated along North Broadway Street, an older commercial/residential
corridor in Wind Gap Borough. This stretch of roadway contains a number of small local
retailers. Businesses immediately surrounding the subject property include a Texaco gas
station as well as a number of local sales and service-oriented retailers. Although no formal
market studies exist for the local marketplace, it appears that the occupancy rate of competitive
buildings was in the vicinity of 90.0 percent. As West 3rd Street is virtually 100 percent built-up,
there was no new commercial construction along this roadway. The balance of the local market
area consists of residential development primarily situated along the secondary roadways as
well as vacant rural land.
Local Area Characteristics

According to the 2000 Census, the population for Mount Carmel Borough was 6,390 persons.
This represents an 11.9 percent decline from the 1990 Census figure of 7,254 persons.
Special Hazards or Adverse Influences

We are not aware of any atypical or unusual detrimental influences, such as land fills, flooding,
noise pollution, air pollution or chemical factories or storage in the immediate neighborhood of
the subject.
Conclusion
The subject property is situated at the southeast corner of West 3rd Street and South Maple
Street in Mount Carmel Borough, Northumberland County, Pennsylvania. In addition, the
subject property contains a parking lot situated at the northeast corner of the same intersection.
The trend over the recent past has been one of stabilization after a period of steady decline.
Overall, the trend for the local marketplace appears to be stable.
OFFICE MARKET ANALYSIS
Local Overview
Mount Carmel is an older Borough situated in the northeast section of Pennsylvania. Office
users are typically local tenants, such as real estate agents, insurance brokers, attorneys and
small business people. Because of its size and local character of its tenants, there are no
published statistics on vacancy, rental rates and lease terms. But our survey of nearby buildings
indicated that vacancy rate appeared to be approximately 10.0 percent for similar type space.
Rental Rates and Terms

Local brokers indicate that rental rates generally range between $8 and $15 per square foot for
office space. In addition, terms typically last from one and five years. Expense structures vary.
Some leases are completely gross, with the landlord paying all operating expenses. The more
common lease structure is that the tenant pays for increases in some or all operating expenses
over the first (base) year of the lease. Occasionally, the tenant is required to pay all operating
expenses (triple net). However, the net lease structure is more common in newly constructed
single story office buildings in campus settings.
Tenant Improvement Costs

Tenant improvement costs vary. New tenants in older buildings such as the subject have a
minimal tenant allowance intended to cover painting the walls and cleaning or replacing carpets.
That cost could range between $2 and $5 per square foot. Buildings that can command a
higher rent due to age, location, condition and parking will also often have a higher tenant
improvement costs, ranging up to $10 to $20 per square foot.
Leasing Commissions
The standard leasing commission in this marketplace is based upon a percentage of the rent
paid. The norm is 6% of the first year’s rent, 5% of the second year’s rent, 4% of the third year’s
rent and 3% for each subsequent year. For renewals, half that amount is anticipated. The
leasing commission is typically paid half at signing and the remaining at occupancy.
The Subject Property

While the subject property is currently utilized as a bank branch, its multi story design is
considered less functional by current standards than a one-story design. If the subject were to
become vacant, it would most likely be used for office space.
SITE DESCRIPTION

17851
The subject property is situated at the southeast corner of West
3rd Street and South Maple Street in Mount Carmel Borough,
Northumberland County, Pennsylvania. In addition, the subject
property contains a parking lot situated at the northeast corner of
the same intersection.
Shape: Irregular
Topography: Generally level
Land Area: 0.3788 acres
16,502 square feet
Frontage, Access, Visibility: The subject site contains good frontage along 3rd Street and
Maple Street. Vehicular access to the subject's parking lot is
available via curb cuts along both of these roadways. Visibility is
rated as average.
Soil Conditions: We did not receive nor review a soil report. However, we assume
that the soil's load-bearing capacity is sufficient to support the
existing structure. We did not observe any evidence to the
contrary during our physical inspection of the property. Drainage
appears to be adequate.
Utilities: All utilities are available to the site.
Site Improvements: The site improvements include asphalt paved parking areas,
curbing, signage, landscaping, yard lighting and drainage.
Land Use Restrictions: We were not given a title report to review. We do not know of any
easements, encroachments, or restrictions that would adversely
affect the site's use. However, we recommend a title search to
determine whether any adverse conditions exist.
Flood Map: National Flood Insurance Rate Map Community Panel Number
4207380001C dated June 19,1985.
Flood Zone: FEMA Zone C: Areas outside of a 100-year flood hazard.
Wetlands: We were not given a Wetlands survey. If subsequent engineering
data reveal the presence of regulated wetlands, it could
materially affect property value. We recommend a wetlands
survey by a competent engineering firm.
Hazardous Substances: We observed no evidence of toxic or hazardous substances
during our inspection of the site. However, we are not trained to
perform technical environmental inspections and recommend the
services of a professional engineer for this purpose.
Overall Functionality: The subject site is functional for its current use.
IMPROVEMENTS DESCRIPTION
The following description of improvements is based upon our physical inspection of the
improvements along with our discussions with the building manager.
General Description
Year Built: 1965
Number of Buildings: 1
Number of Stories: 3
Land To Building Ratio: 1.18 to 1
Gross Building Area: 14,000 square feet
Net Rentable Area: 14,000 square feet
Construction Detail
Basic Construction: Masonry
Foundation: Masonry
Framing: Masonry and wood
Floors: Concrete poured over metal deck.
Exterior Walls: Brick
Roof Cover: Flat roofing system consisting of built-up assemblies with
rubber membrane cover.
Windows: The windows are thermal windows in aluminum frames.
Pedestrian Doors: Glass in aluminum frames.
Mechanical Detail
Heating: Heat is supplied by roof-mounted package HVAC units.
Cooling: The building is cooled by roof-mounted package HVAC units.
Plumbing: The plumbing system is assumed to be adequate for existing
use and in compliance with local law and building codes. The
plumbing system is typical of other bank branch/office
properties in the area with a combination of PVC, steel, copper
and cast iron piping throughout the building.
Electrical Service: Assumed to be adequate.
Elevator Service: The building is not elevator served.
Fire Protection: The building is not sprinklered.
Security: Monitors are situated in the bank branch area.
Interior Detail
Layout: The subject property represents a three-story office building,
with the first floor primarily used as a bank branch and the
second floor consisting of vacant office space. In addition, the
building contains a partial basement level. We would note that
the third floor office space was in shell-like condition as of the
date of inspection. However, it appears that this space could
be renovated and rented. We have estimated a tenant
improvement allowance for this portion of the building of $15.00
per square foot.
Floor Covering: Ceramic tile, carpet or resilient tile.
Walls: Painted or wallpapered sheetrock.
Ceilings: The ceilings are suspended acoustical tile.
Lighting: A mixture of fluorescent and incandescent light fixtures.
Restrooms: The building features adequate restrooms for men and women.
Site Improvements
Parking: 13 spaces (0.93:1,000 Sq Ft). Open surface parking.
Onsite Landscaping: Minimal.
Other: Concrete curbs and walkways.
Personal Property: Personalty was excluded from our valuation.
Capital Improvements: Other than normal routine property maintenance, there are no
major capital improvement expenditures planned in the
immediate future.
Summary
Condition: Average
With the exception of the third story shell space, the building
has been well maintained and provides an average appearance
relative to competing buildings within its market.
We did not inspect the roof of the building or make a detailed
inspection of the mechanical systems. The appraisers,
however, are not qualified to render an opinion as to the
adequacy or condition of these components. The client is urged
to retain an expert in this field if detailed information is needed
about the adequacy and condition of mechanical systems.
Quality: Good
Design and Functionality: The subject was originally constructed as a bank building. Its
multi-story design is considered less functional for modern bank
operations than a one-story structure. While it can still be
utilized for bank operations, it is anticipated that at some future
date, it will be more functional for general office space. In
addition, the building contains a partial basement level. We
would note that the third floor office space was in shell-like
condition as of the date of inspection. However, it appears that
this space could be renovated and rented. We have estimated
a tenant improvement allowance for this portion of the building
of $15.00 per square foot.
Actual Age: 39 years
Effective Age: 25 years
Expected Economic Life: 50 years
Remaining Economic Life: 25 years
Americans With Disabilities Act

The Americans With Disabilities Act (ADA) became effective January 26, 1992. We have not
made, nor are we qualified to make a compliance survey of this property to determine whether
or not it is in conformity with the requirements of the ADA. It is possible that a compliance
survey could reveal that the property is not in compliance with one or more of the requirements
of the Act. If so, this fact could have a negative effect upon the value of the property. Since we
have not been provided with the results of a survey, we did not analyze the results of possible
non-compliance.
Hazardous Substances
We are not aware of any potentially hazardous materials (such as formaldehyde foam
insulation, asbestos insulation, radon gas emitting materials, or other potentially hazardous
materials) which may have been used in the construction of the improvements. However, we
are not qualified to detect such materials and urge the client to employ an expert in the field to
determine if such hazardous materials exist.
REAL PROPERTY TAXES AND ASSESSMENTS
The property is subject to the taxing jurisdiction of Northumberland County. The assessors'
parcel identification numbers are 7-2-4-104 and 4-2-1-246. The assessment and taxes for the
property are presented below:
PROPERTY TAX DATA (2004/2005)

2004
Assessed Value
Total: $166,225
Tax Rate 0.13235
Total Property Taxes $22,000
Building Area ( SF ) 14,000

Property Taxes per Square Foot $1.57
Total taxes for the property are $22,000, or $1.57 per square foot. Based upon tax burdens on
properties in the market that are similar to the subject, the subject’s real estate taxes appear to
be reasonable. Based upon historical trends, we have assumed taxes will increase 3.00 percent
per annum over the projection period.
The current assessment-to-value ratio in Northumberland County is 50.0 percent. Thus, the
subject’s assessment indicates a market value estimate by the taxing authority of $332,450 or
$23.75 per square foot. Based on our subsequent analysis, it would appear that the subject
property is favorably assessed.
Assessments in Pennsylvania are done irregularly and on a countywide basis. Therefore, a
sale of the subject would not trigger a re-assessment. However, a substantial renovation could
cause a re-assessment. When a building owner applies to a local township for a building permit
for renovation, this information is forwarded to the county assessor. A re-assessment would
typically be based primarily on the costs of the renovation.
ZONING
The property is zoned C-2, Commercial by the City of Mount Carmel Borough. Permitted uses
within this district include a wide variety of office, retail and commercial development. Zoning
regulations imposed within this district are as follows:
ZONING REGULATIONS
Minimum Lot Area: None
Minimum Yard Requirements:
Front: None
Side: None
Rear: None
Maximum Building Height: 6 stories or 65 feet
Maximum Building Coverage: 75%
We are not experts in the interpretation of complex zoning ordinances but the property appears
to be a legal, conforming use based on our review of public information. The determination of
compliance is beyond the scope of a real estate appraisal.
We know of no deed restrictions, private or public, that further limit the subject property's use.
The research required to determine whether or not such restrictions exist, however, is beyond
the scope of this appraisal assignment. Deed restrictions are a legal matter and only a title
examination by an attorney or title company can usually uncover such restrictive covenants.
Thus, we recommend a title search to determine if any such restrictions do exist.
HIGHEST AND BEST USE
Definition Of Highest And Best Use

According to The Dictionary of Real Estate Appraisal, Third Edition (1993), a publication of the
Appraisal Institute, the highest and best use is defined as:
The reasonably probable and legal use of vacant land or an improved property,
which is physically possible, appropriately supported, financially feasible, and that
results in the highest value. The four criteria the highest and best use must meet are
legal permissibility, physical possibility, financial feasibility, and maximum
profitability.
Highest And Best Use Criteria

We have evaluated the site's highest and best use both as currently improved and as if vacant.
In both cases, the property’s highest and best use must meet four criteria. That use must be (1),
legally permissible (2) physically possible, (3) financially feasible, and (4) maximally productive.
Legally Permissible
The first test concerns permitted uses. According to our understanding of the zoning ordinance,
noted earlier in this report, the site may legally be improved with structures that accommodate a
variety of commercial development. Aside from the site's zoning regulations, we are not aware
of any legal restrictions that limit the potential uses of the subject.
Physically Possible
The second test is what is physically possible. As discussed in the "Site Description," section of
the report, the site's size, soil, topography, etc. do not physically limit its use. The subject site is
of adequate shape and size to accommodate most permitted uses.
Financial Feasibility and Maximal Productivity

The third and fourth tests are what is financially feasible and what will produce the highest net
return. After analyzing the physically possible and legally permissible uses of the property, the
highest and best use must be considered in light of financial feasibility and maximum
productivity. For a potential use to be seriously considered, it must have the potential to provide
a sufficient return to attract investment capital over alternative forms of investment. A positive
net income or acceptable rate of return would indicate that a use is financially feasible.
Highest and Best Use of Site As Though Vacant

Considering the subject site’s physical characteristics and location, as well as the state of the
local market, it is our opinion that the Highest and Best Use of the subject site as though vacant
is commercial development.
HIGHEST AND BEST USE
Highest and Best Use of Property As Improved

According to the Dictionary of Real Estate Appraisal, highest and best use of the property as
improved is defined as:
The use that should be made of a property as it exists. An existing property should
be renovated or retained “as is” so long as it continues to contribute to the total
market value of the property, or until the return from a new improvement would more
than offset the cost of demolishing the existing building and constructing a new one.
It is our opinion, the existing building adds value to the site as if vacant, therefore dictating a
continuation of its current use. In conclusion, it is our opinion that the Highest and Best Use of
the subject property as improved is as it is currently developed.
VALUATION PROCESS
Methodology
There are three generally accepted approaches available in developing an opinion of value: the
Cost, Sales Comparison and Income Capitalization approaches. We have considered each in
this appraisal to develop an opinion of the market value of the subject property. In appraisal
practice, an approach to value is included or eliminated based on its applicability to the property
type being valued and the quality of information available. The reliability of each approach is
dependent upon the availability and comparability of the market data uncovered as well as the
motivation and thinking of purchasers in the market for a property such as the subject. Each
approach is discussed below, and applicability to the subject property is briefly addressed in the
following summary.
Land Value
Developing an opinion of land value is typically accomplished via the Sales Comparison
Approach by analyzing recent sales transactions of sites of comparable zoning and utility
adjusted for differences which exist between the comparables and the subject. Valuation is
typically accomplished using a unit of comparison such as price per square foot of land area.
Adjustments are applied to the unit of comparison from an analysis of comparable sales, and
the adjusted unit of comparison is then used to derive a value for the subject site.
Cost Approach
The Cost Approach is based upon the proposition that an informed purchaser would pay no
more for the subject than the cost to produce a substitute property with equivalent utility. This
approach is particularly applicable when the property being appraised involves relatively new
improvements which represent the highest and best use of the land; or when relatively unique or
specialized improvements are located on the site, for which there exist few improved sales or
leases of comparable properties.
In the Cost Approach, the appraiser forms an opinion of the cost of all improvements,
depreciating them to reflect any value loss from physical, functional and external causes. Land
value, entrepreneurial profit and depreciated improvement costs are then added resulting in a
value estimate for the subject property.
Sales Comparison Approach

The Sales Comparison Approach utilizes sales of comparable properties, adjusted for
differences, to indicate a value for the subject property. Valuation is typically accomplished
using a unit of comparison such as price per square foot of building area, effective gross income
multiplier or net income multiplier. Adjustments are applied to the unit of comparison from an
analysis of comparable sales, and the adjusted unit of comparison is then used to derive a value
for the subject property.
VALUATION PROCESS
ncome Capitalization Approach

This approach first determines the income-producing capacity of a property by utilizing contract
rents on leases in place and by estimating market rent from rental activity at competing
properties for the vacant space. Deductions then are made for vacancy and collection loss and
operating expenses. The resulting net operating income is divided by an overall capitalization
rate to derive an opinion of value for the subject property. The capitalization rate represents the
relationship between net operating income and value. This method is referred to as Direct
Capitalization.
Related to the Direct Capitalization Method is the Discounted Cash Flow Method. In this
method, periodic cash flows (which consist of net operating income less capital costs) and a
reversionary value are developed and discounted to a present value using an internal rate of
return that is determined by analyzing current investor yield requirements for similar
investments.
Summary
conclusion.
The valuation process is concluded by analyzing each approach to value used in the appraisal.
When more than one approach is used, each approach is judged based on its applicability,
reliability, and the quantity and quality of its data. A final value opinion is chosen that either
corresponds to one of the approaches to value, or is a correlation of all the approaches used in
the appraisal.
LAND VALUATION
LAND VALUATION
We used the Sales Comparison Approach to develop an opinion of land value. In this method,
we analyzed prices buyers have recently paid for similar sites in the market, as well as
examined current offerings. In making comparisons, we adjusted the sale prices for differences
between this site and the comparable sites. If the comparable was superior to the subject, a
downward adjustment was made to the comparable sale. If inferior, an upward adjustment was
made. We present on the following pages a summary of pertinent details of sites recently sold
that we compared to the subject site.
In the valuation of the subject site’s fee simple interest, the Sales Comparison Approach has
been used to establish prices being paid for comparably zoned land. The most widely used and
market oriented unit of comparison for properties with characteristics similar to those of the
subject is the sale price per square foot of land area. All transactions utilized in this analysis are
analyzed on this basis.
The major elements of comparison utilized to value the subject site include the property rights
conveyed, the financial terms incorporated into the transaction, the conditions or motivations
surrounding the sale, changes in market conditions since the sale, the location of the real
estate, its utility and the physical characteristics of the property.
Discussion of Comparable Sales
Comparable Sale No. 1

This is the sale of a 509,652 square foot parcel located along Columbia Boulevard (Route 11) in
Bloomsburg, PA. This property is in the Commercial zoning district. Dillon Floral Corp, First
Eastern Bank sold the site in August 2002 for a price of $2,024,125 or $3.97 per square foot of
land area. The site has average utility and public utilities are all available. After all adjustments,
this sale indicated an adjusted unit value of $3.36 per square foot. Overall, this sale was
adjusted downward for location and utility and upward due to its larger size.

This is the sale of a 3,900 square foot parcel located at Lehigh & Oak Street in Frackville, PA.
This property is in the Commercial zoning district. Zack M. Fran sold the property in October
2001 for a price of $19,900 or $5.10 per square foot of land area. The site has good utility and
public utilities are all available. After all adjustments, this sale indicated an adjusted unit value of
$3.87 per square foot. This sale was adjusted upward for its larger size and downward for its
superior commercial utility.

This is the sale of a 138,956 square foot parcel located along the 2200 Block of West Front
Street (Route 11) in Bloomsburg, PA. This property is in the Commercial zoning district. Daisey
Burke sold the property to Dr. Definnis in August 2000 for a price of $515,000 or $3.71 per
square foot of land area. The site has good utility and public utilities are all available. After all
adjustments, this sale indicated an adjusted unit value of $2.91 per square foot. This sale was
adjusted downward for its superior commercial utility and better location and upward for its
larger size.
LAND VALUATION
Conclusion of Site Value

After adjustments, the comparable land sales reflect unit prices ranging from $2.91 to $3.87 per
square foot ($126,799 to $168,503 per acre), with an average of $3.38 per square foot
($147,198 per acre).
Placing equal emphasis on each sale, we conclude that the indicated value by the Sales
Comparison Approach is as follows:
Square
Acres
Feet
Land Area: 16,502 .38
Concluded Unit Value: X $3.00 X $130,680
Indicated Land Value: $49,506 $49,506
Rounded Land Value: $50,000 $50,000
LAND VALUATION
SUMMARY OF LAND SALES
Grantor Price Site SqFt Zoning Public Price/SF
No. Location Grantee Date Site Acres Utility* Utilities Price/Acre COMMENTS
Dillon Floral Corp, First
1 Columbia Boulevard (Route 11) Eastern Bank $2,024,125 509,652 SF Commercial $3.97 Site acquired for development
Bloomsburg, PA Bloomsburg Center, LLC. 8/02 11.7000 Ac Average All Available $173,002 with a grocery store.
2 Lehigh & Oak Street Zack M. Fran $19,900 3,900 SF Commercial $5.10 Assemblage of two commercial
All Available
Frackville, PA Undisclosed 10/01 0.0895 Ac Good $222,268 parcels.
2200 Block of West Front Street
3 (Route 11) Daisey Burke $515,000 138,956 SF Commercial $3.71
All Available Sale of commercial site.
Bloomsburg, PA Dr. Definnis 8/00 3.1900 Ac Good $161,442
Price Site SF Zoning Public Price/SF
Date Site Acres Utility* Utilities Price/Acre
Survey Low $19,900 3,900 SF $3.71
Survey High $2,024,125 509,652 SF $5.10
Average $853,008 217,503 SF $4.26
Survey Low 8/00 0.0895 Ac $161,442
Survey High 8/02 20.0000 Ac $222,268
Average 8/01 8.7449 Ac $185,571
Subject Property 16,502 C-2, Commercial
All Available
0.3788 Average
LAND VALUATION
LAND SALE ADJUSTMENT GRID
Economic Adjustments (Cumulative) Property Characteristic Adjustments (Additive)
Price Property Adj.

PSF & Rights Conditions Market* Public Price
No. Date Conveyed of Sale Financing Conditions Subtotal Location Size Utilities Utility** Other PSF Overall
1 $3.97 Fee Simple/Mkt. Arms-Length None Inferior $4.20 Superior Larger Similar Superior Similar $3.36 Superior
8/02 0.0% 0.0% 0.0% 5.7% 5.7% -20.0% 20.0% 0.0% -20.0% 0.0% -20.0%
2 $5.10 Fee Simple/Mkt. Arms-Length None Inferior $5.53 Similar Smaller Similar Superior Similar $3.87 Superior
10/01 0.0% 0.0% 0.0% 8.3% 8.3% 0.0% -20.0% 0.0% -10.0% 0.0% -30.0%
3 $3.71 Fee Simple/Mkt. Arms-Length None Inferior $4.16 Superior Larger Similar Superior Similar $2.91 Superior
8/00 0.0% 0.0% 0.0% 12.2% 12.2% -20.0% 10.0% 0.0% -20.0% 0.0% -30.0%
SALES SUMMARY
Price Range Unadj. $/SF $/Acre Adj. $/SF $/Acre *Market Conditions Adjustment
Low $3.71 $161,035 $2.91 $126,799 Compound annual change in market conditions: 3.00%
High $5.10 $222,268 $3.87 $168,503 Date of Value (for adjustment calculations): 6/17/04
Average $4.26 $185,571 $3.38 $147,198
**Utility includes shape, access, frontage and visibility.
VALUE CONCLUSION $/SF $/Acre

Indicated Value $3.00 $130,680
Site Area x 16,502 x 0.3788
Indicated Value $49,506 $49,506
Rounded to nearest $50,000 $50,000 $50,000 5
Per square foot $3.03 $131,984
COST APPROACH
Methodology
The Cost Approach is based on the principle of substitution, which states that no prudent person
will pay more for a property than the cost of acquiring a site and constructing, without undue
delay, an equally desirable and useful property. The steps have been outlined in the Valuation
Process section of this report. We have previously developed an opinion of land value of
$50,000.
Replacement Cost New (RCN)

Our opinion of replacement cost new is based on the Calculator Section in Marshall Valuation
Service, a nationally recognized publication containing construction costs for all types of
improvements. Base costs are revised monthly and adjustment factors are provided to reflect
regional and local cost variations.
Base Building Costs

The published costs include all direct costs for the base structure, tenant improvements, and the
following indirect costs:
1. Plans, specifications, and building permits, including engineer's and architect's fees;
2. Interest on construction loan during the construction period;
3. Sales tax on materials; and
4. Contractor's overhead and profit, including worker's compensation, fire and liability
insurance, unemployment insurance, etc.
These base building costs, adjusted for any unique building characteristics and cost multipliers,
are presented in the cost summary chart at the end of this section.
Site Improvement Costs

Site improvement costs are not included in our Base Building Cost opinion. These include
landscaping, asphalt paving, walkways, etc. Site improvement costs are estimated at $2.00 per
square foot of land area or $33,004.
Other Indirect Costs

Other indirect costs not included in Base Building Costs are developer overhead, property
taxes, permanent loan fees, legal costs, developer fees, contingencies, and lease-up and
marketing costs.
Research into these costs leads to the conclusion that an average property requires an
allowance for other indirect costs of between 5.00 percent and 10.00 percent of Base Building
Costs plus Site Improvements Costs. We have chosen to use 5.00 percent in our analysis.
Entrepreneurial Profit
Entrepreneurial profit represents the return to the developer for taking the construction and
lease-up risk. Based upon our discussions with developers in the local market, this figure tends
to range between 10.00 percent to 20.00 percent of Base Building, Site Improvement and Other
Indirect Costs. We have chosen to use 15.00 percent in our analysis.
COST APPROACH
Accrued Depreciation
There are three sources of accrued depreciation:
Physical Deterioration: We have used the economic age-life method to develop an
opinion of physical deterioration. In the Improvements
Description section of this report, we developed an opinion that
the effective age of the subject to be 25 years and the economic
life to be 50 years. This results in a physical deterioration of
50.00 percent (effective age divided by economic life).
Functional Obsolescence: The subject was originally constructed as a bank building. Its
multi-story design is considered less functional for modern bank
operations than a one-story structure. While it can still be
utilized for bank operations, it is anticipated that at some future
date, it will be more functional for general office space.
Therefore, functional obsolescence is 25.00 percent.
External Obsolescence: Based upon a review of the specific location of the subject as
well as the local bank branch/office market, the subject property
is not affected by external obsolescence.
Total Depreciation: The sum of these elements of accrued depreciation is 75.00
percent.
Stabilization Expense: The subject property is not operating at a stabilized occupancy
level. As such, we have made the appropriate deduction
associated with leasing up the subject to a more market-
oriented occupancy level. This deduction accounts for rent loss,
shortfall in operating expense reimbursement, tenant
improvements and leasing commissions. In the case of the
subject property, this stabilization expense is placed at
$119,131.
Conclusion
Please refer to the following page for our Cost Approach summary which concludes to a market
value opinion as follows:
$/SF
Value
(NRA)
Cost Approach Conclusion $618,168
Rounded $600,000 $42.86
COST APPROACH
COST APPROACH SUMMARY

Total
Replacement Cost New (RCN) GBA (SF) $/GBA Sub-Total Cost
Building Improvements
Base Cost 14,000 $149.70 $2,095,800
Sprinklers 14,000 0.00 0
Subtotal 14,000 $149.70 $2,095,800
Multipliers
Current Cost 1.060
Local Area 1.010
Perimeter 1.000
Building Height 1.000
Product of Multipliers x 1.071
Adjusted Base Building Cost $160.27 $2,243,763
Total Site Improvements $33,004
Total Direct Costs $2,276,767
Plus Other Indirect Costs (%of Direct Costs) 5.0% 113,838
Subtotal Replacement Cost New ( RCN ) $2,390,606
Plus: Entrepreneurial Profit (% of RCN) 15.0% 358,591
Total Replacement Cost New ( RCN ) $2,749,197
Per Square Foot (based on gross area) $196.37
Less Accrued Depreciation

Physical Deterioration
Effective Age (Years): 25 Years
Economic Life: 50 Years
Total Physical Depreciation: 50.0% $1,374,598
Functional Obsolescence 25.0% 687,299
External Obsolescence 0.0% 0
Total 75.0% $2,061,898
Depreciated Value of the Improvements $687,299
Per Square Foot (based on gross area) $49.09
Plus Land Value $50,000
Indicated Value $737,299

Less: Stabilization Expense: $119,131
Indicated Value by Cost Approach $618,168
Rounded to nearest $50,000 5 $600,000
Per Square Foot (based on net rentable area) $42.86
Source: Marshall Valuation Service Section: 15 Quality: Good

Page: 21 Class: C
Date: 11/03 Type: Bank/Branches
SALES COMPARISON APPROACH
Methodology
In the Sales Comparison Approach, we developed an opinion of value by comparing the subject
property with similar, recently sold properties in the surrounding or competing area. Inherent in
this approach is the principle of substitution, which states that when a property is replaceable in
the market, its value tends to be set at the cost of acquiring an equally desirable substitute
property, assuming that no costly delay is encountered in making the substitution.
By analyzing sales that qualify as arm’s-length transactions between willing and knowledgeable
buyers and sellers, we can identify value and price trends. The basic steps of this approach are:
1. Research recent, relevant property sales and current offerings throughout the competitive
area;
2. Select and analyze properties that are similar to the property appraised, analyzing changes
in economic conditions that may have occurred between the sale date and the date of value,
and other physical, functional, or locational factors;
3. Identify sales that include favorable financing and calculate the cash equivalent price;
4. Reduce the sale prices to a common unit of comparison such as price per square foot of
net rentable area, effective gross income multiplier, or net income per square foot;
5. Make appropriate comparative adjustments to the prices of the comparable properties to
relate them to the property being appraised; and
6. Interpret the adjusted sales data and draw a logical value conclusion.
The most widely used and market-oriented unit of comparison for properties such as the subject
is the sales price per square foot of net rentable area. All comparable sales were analyzed on
this basis. On the following pages we present a summary of the improved properties that we
compared to the subject property, a map showing their locations, and the adjustment process.
Due to the nature of the subject property and the level of detail available for the comparable
data, we have elected to analyze the comparables through application of a traditional
adjustment grid utilizing percentage adjustments.
The sales that we have utilized represent the best available information that could be compared
to the subject property. The major elements of comparison for an analysis of this type include
the property rights conveyed, the financial terms incorporated into a particular transaction, the
conditions or motivations surrounding the sale, changes in market conditions since the sale, the
location of the real estate, its physical traits and the economic characteristics of the property.
We have made a downward adjustment to those comparables considered superior to the
subject. Conversely, an upward adjustment was made to those comparables considered to be
inferior.
SUMMARY OF IMPROVED SALES
Sales Price
Address Grantor Price Site SF Yr. Built Condition PSF
No. City, State Grantee Date Bldg NRA Quality Parking Occup. Comments
Elizabeth Avenue This is a ten-story office building
85 East Elizabeth Avenue Associates, LLC. situated in the City of Bethlehem.
1 $3,475,000 76,230 1967 Average $40.41
City of Bethlehem, PA Diversified Capital - 6/02 86,000 Average None 100%
Bethlehem
This property also included a
parking garage that included 465
2 8 West Market Street Mellon Bank, NA $4,000,000 46,174 1913 Average $23.53
spaces.
City of Wilkes-Barre, PA Citizens Bank of 11/01 170,000 Average Structured 100%
Pennsylvania
This property was 100 percent
master leased to Summit Bank at
3 17 West Broad Street Flatrock Partners, LP. $7,200,000 37,462 1974 Average $54.73
the time of sale. The rent at the
City of Bethlehem, PA Diversified Capital - 1/01 131,550 Average None 100%
time of sale was $6.61/SF, triple
Bethlehem
net.
This property was 80 percent

4 101-111 North Fifth Street Berkshire Building Group $3,200,000 20,909 1914 Average $28.88 leased at the time of sale.
City of Reading, PA Berkshire Realty 1/01 110,800 Average None 80%
Associates, LLC.
Subject Property 16,502 1965 Average

14,000 Average Surface 64%
Survey Minimum $3,200,000 20,909 1913 $23.53
Survey Maximum $7,200,000 76,230 1974 $54.73
Survey Average $4,468,750 45,194 1942 $36.89
Survey Minimum 1/01 86,000 80%
Survey Maximum 6/02 170,000 100%
Survey Average 7/01 124,588 95%
IMPROVED SALE ADJUSTMENT GRID
ECONOMIC ADJUSTMENTS (CUMULATIVE) PROPERTY CHARACTERISTIC ADJUSTMENTS (ADDITIVE)
Price Property Age, Adj.
PSF & Rights Conditions Market* Quality No. of Price
No. Date Conveyed of Sale Financing Conditions Subtotal Location Size Condition Stories Parking Utility** Economics Other PSF Overall
1 $40.41 Leased Fee/Mkt. Arms-Length None Inferior $42.91 Similar Larger Superior Similar Similar Similar Similar Similar $47.20 Inferior
6/02 0.0% 0.0% 0.0% 6.2% 6.2% 0.0% 15.0% -5.0% 0.0% 0.0% 0.0% 0.0% 0.0% 10.0%
2 $23.53 Leased Fee/Mkt. Arms-Length None Inferior $25.44 Similar Larger Similar Similar Similar Similar Similar Similar $30.52 Inferior
11/01 0.0% 0.0% 0.0% 8.1% 8.1% 0.0% 20.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 20.0%
3 $54.73 Leased Fee/Mkt. Arms-Length None Inferior $60.64 Similar Larger Superior Similar Similar Similar Superior Similar $60.64 Superior
1/01 0.0% 0.0% 0.0% 10.8% 10.8% 0.0% 20.0% -5.0% 0.0% 0.0% 0.0% -15.0% 0.0% 0.0%
4 $28.88 Leased Fee/Mkt. Arms-Length None Inferior $32.00 Similar Larger Similar Similar Similar Similar Similar Similar $36.80 Inferior
1/01 0.0% 0.0% 0.0% 10.8% 10.8% 0.0% 15.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 15.0%
SALES SUMMARY
Price Range Unadj. Price PSF Adj. Price PSF *Market Conditions Adjustment
Low $23.53 $30.52 Compound annual change in market conditions: 3.00%
High $54.73 $60.64 Date of Value (for adjustment calculations): 6/17/04
Average $36.89 $43.79
** Utility includes loss factor, floor plates, etc.
VALUE CONCLUSION
Indicated Value per Square Foot NRA $45.00
Net Rentable Area in Square Feet x 14,000
Less: Stabilization Expense $119,131
Rounded to nearest $25,000 $500,000 4
Per square foot $35.71
Discussion of Comparable Sales

This is the June 2002 sale of an office property located at 85 East Elizabeth Avenue in the City
of Bethlehem, PA. The site contains 76,230 square feet and is improved with an 86,000 square
foot building. The improvements were constructed in 1967 and are of average quality. The
property sold from Elizabeth Avenue Associates, LLC. to Diversified Capital - Bethlehem for
$3,475,000 or $40.41 per square foot. After all adjustments, this comparable indicated an
adjusted unit value of $47.20 per square foot. This sale was adjusted upward due to its larger
size and improved market conditions and downward for its superior condition.

This is the November 2001 sale of an office property located at 8 West Market Street in the City
of Wilkes-Barre, PA. The site contains 46,174 square feet and is improved with a 170,000
square foot building. The improvements were constructed in 1913 and are of average quality.
The property sold from Mellon Bank, NA to Citizens Bank of Pennsylvania for $4,000,000 or
$23.53 per square foot. After all adjustments, this comparable indicated an adjusted unit value
of $30.52 per square foot. This sale was adjusted upward for its larger size and improved
market conditions.

This is the January 2001 sale of an office property located at 17 West Broad Street in the City of
Bethlehem, PA. The site contains 37,462 square feet and is improved with a 131,550 square
foot building. The improvements were constructed in 1974, and are of average quality. The
property sold from Flatrock Partners, LP. to Diversified Capital - Bethlehem for $7,200,000 or
$54.73 per square foot. After all adjustments, this comparable indicated an adjusted unit value
of $60.64 per square foot. This sale was adjusted upward for its larger size and downward for
its superior condition. In addition, this sale was adjusted downward as the building was 100
percent master leased to a credit tenant at the time of sale.
This is the January 2001 sale of an office property located at 101-111 North Fifth Street in the
City of Reading, PA. The site contains 20,909 square feet and is improved with a 110,800
square foot building. The improvements were constructed in 1914 and are of average quality.
The property sold from Berkshire Building Group to Berkshire Realty Associates, LLC. for
$3,200,000 or $28.88 per square foot. After all adjustments, this comparable indicated an
adjusted unit value of $36.80 per square foot. This sale was adjusted upward for it larger size
and improved market conditions.
Summary of Percentage Adjustment Method

After adjustments the comparable improved sales reflect unit prices ranging from $30.52 to
$60.64 per square foot with an average adjusted price of $43.79 per square foot. Equal
emphasis was placed on each sale.
However, the subject property is not operating at a stabilized occupancy level. As such, we
have made the appropriate deduction associated with leasing up the subject to a more market-
oriented occupancy level. This deduction accounts for rent loss, shortfall in operating expense
reimbursement, tenant improvements and leasing commissions. In the case of the subject
property, this stabilization expense is placed at $119,131.
Therefore, we conclude that the value via the Sales Comparison Approach, after making the
necessary deduction, is as follows:
Net Rentable Area: 14,000

Concluded Price Per Square Foot: x $45.00
Less Stabilization Expense: $119,131
Rounded: $500,000
Per Square Foot: $35.71
INCOME CAPITALIZATION APPROACH
Methodology
The Income Capitalization Approach is a method of converting the anticipated economic
benefits of owning property into a value through the capitalization process. The principle of
“anticipation” underlies this approach in that investors recognize the relationship between an
asset’s income and its value. In order to value the anticipated economic benefits of a particular
property, potential income and expenses must be projected, and the most appropriate
capitalization method must be selected.
The two most common methods of converting net income into value are Direct Capitalization
and Discounted Cash Flow. In direct capitalization, net operating income is divided by an overall
capitalization rate to indicate an opinion of market value. In the discounted cash flow method,
anticipated future cash flows and a reversionary value are discounted to an opinion of net
present value at a chosen yield rate (internal rate of return).
Based upon the above, both methods are appropriate in this assignment.
Occupancy Status
Wachovia Bank will occupy 9,000 square feet or 64.29 percent of the total NRA for a 20 year
term at $5.92 per square foot per annum (Base Rent) increasing 1.5 percent every 5 years of
the term. The lease is absolute net whereby the tenant is responsible for all operating expenses
(including management) and real estate taxes.
The following chart summarizes the annualized attained base rent and occupancy level of the
leases in place as of the appraisal date.
OCCUPANCY STATUS
Space Category No. of Tenants Occ. SF Total Rent Avg. $/SF Vct. SF Total SF Percent
Market Rent 1 9,000 $53,280 $5.92 - 9,000 64.3%
Other Tenants 0 - $0 N/A 5,000 5,000 35.7%
Total/Weighted Average 1 9,000 $53,280 $5.92 5,000 14,000 100.0%
Percent 64.3% 35.7%
On the following page is an attained rent schedule for all tenants in place as of the appraisal
date.
ATTAINED RENT SCHEDULE AS OF: July-04
Start End Area Base Rent

Tenant Name Suite # Date Date ( SF ) Per Year Rent/SF
Market Rent
Wachovia 1 Jul-04 Jun-24 9,000 $53,280 $5.92
1 tenant sub-total 9,000 $53,280 $5.92
GRAND-TOTALS 9,000 $53,280 $5.92
Office Rent Comparables

The following table summarizes rental activity for office space in competing buildings in the
market.
OFFICE RENT COMPARABLES

Property Location Lease SF Term Rent/ Rent Steps Bldg. Age
No. Tenant Name Date Leased (years) SF Expense Recoveries Bldg. SF Stories TI/SF Comments
1
1912
108 North Wasington Avenue renovated
Office rent in SNB
Scranton, PA Nov-03 2,666 3 $9.00 Flat 36,623 1979 N/A Building.
Michael Pisanchyn Law Offices Full service
2 106 North Wasington Avenue Oct-04

Scranton, PA 3 $8.50 $0.50/psf per annum 1979 N/A
Office rent in SNB
Lackawanna County 3,124 Full service 24,000
Building.
Redevelopment Authority
3
Jul-04
Reading, PA 10 $7.79 2% annual increases 1965 N/A Bank branch/office
24,185 N/A
Citizens Bank Triple Net lease.
Survey Low: Nov-03 2,666 3 $7.79

Survey High: Oct-04 24,185 10 $9.00
Survey Mean: May-04 9,992 5 $8.43 N/A
Conclusion of Market Rent

We have analyzed recent leases negotiated in competitive buildings in the marketplace, which
range from $7.79 to $9.00 per square foot, with an average of $8.43. Recovery clauses for the
comparable leases are typically written on a full service basis, whereby the tenant pays for
increases over base year expenses and electric. Landlords are responsible for base year
expenses and capital expenditures. Comparables #1 and #2 were adjusted upward for better
quality space (assuming the shell space at the subject is fit-out with the assumed TI). In
addition comparable #3 was adjusted upward as it is a triple net lease.
Based upon our analysis of the comparables, we have concluded to a market rent for the
Wachovia space of $10.00 per square foot on a full service basis. This assumes a full service
lease with a 5 year term.
Market Rent Synopsis

The following chart summarizes our market rent conclusion for each tenant category within the
subject property.
Market
MARKET RENT ESTIMATE Rent
Market Rent Per Square Foot $10.00
Contract Rent Increase Flat

Lease Type Base Year
Stop, Plus
Electric
Lease Term (years) 5
Miscellaneous Revenue
None.
Expense Reimbursements
Wachovia is responsible for their pro-rata share of real estate taxes and operating expenses
(including management). All other existing tenants are assumed to pay increases over base
year expenses. Future tenants are assumed to be responsible for their pro rata share of
increases over base year real estate taxes and operating expenses while the landlord is
responsible for base year expenses and capital expenditures.
Vacancy and Collection Loss

Based upon the current vacancy in the market, and our perception of future market vacancy, we
have projected a global stabilized vacancy rate of 8.00 percent for all non Bank space. We have
also projected a collection loss of 2.00 percent for all non Bank space. The total vacancy and
credit loss is therefore 10.00 percent on all non Wachovia space. No vacancy or collection loss
was taken on the Wachovia space over their 20 year lease term as the Bank is an investment
grade tenant. Upon expiration of this lease, we have assumed a market vacant and collection
loss figure.
Absorption of Vacant Space

The subject property is presently 64.29 percent occupied. We have estimated the vacant space
to be absorbed within nine months.
Operating Expenses
We have developed an opinion of the property’s annual operating expenses after reviewing the
operating performance of similar buildings. We analyzed each item of expense and developed
an opinion as to what a typical informed investor would consider normal. We were provided with
the 2003 actual historical expenses on the subject property, but have relied on the expenses of
comparable properties as well as published statistics provided by IREM.
Our forecast, and our opinion of Year 2 (stabilized) income and operating expenses are
presented on the following page.
REVENUE AND EXPENSE ANALYSIS - STABILIZED (YR. 2)
(1)
2003 C&W Forecast
Total Per SF Total Per SF
POTENTIAL GROSS REVENUE
Base Rental Revenue N/A N/A $103,280 $7.38
Expense Reimbursement Revenue N/A N/A 56,235 4.02
TOTAL POTENTIAL GROSS REVENUE N/A N/A $159,515 $11.39
Vacancy and Collection Loss N/A N/A (5,118) (0.37)
EFFECTIVE GROSS REVENUE N/A N/A $154,397 $11.03
OPERATING EXPENSES
Repairs & Maintenance $37,543 $2.68 $14,420 $1.03
Utilities (excl. tenant electric) $19,827 $1.42 21,630 1.55
Janitorial N/A N/A 10,815 0.77
General & Administrative N/A N/A 3,605 0.26
Security N/A N/A 1,442 0.10
Insurance N/A N/A 2,884 0.21
Roads / Grounds N/A N/A 3,605 0.26
Management N/A N/A 3,860 0.28
Other $20,491 $1.46 721 0.05
Subtotal Operating $77,861 $5.56 $62,982 $4.50
Real Estate Taxes 18,576 1.33 $22,660 $1.62
TOTAL EXPENSES $96,437 $6.89 $85,642 $6.12
NET OPERATING INCOME N/A N/A $68,755 $4.91
Total operating expenses excluding real estate taxes are estimated at $62,982 equating to
$4.50 per square foot or $6.12 per square foot inclusive of taxes. The following expense
comparisons support our opinion of operating expenses for the subject.
OPERATING EXPENSE COMPARABLES

Operating
Property Size (SF) ExpenseYear Expenses/SF
Scranton, PA 36,686 2003 $4.16
Wilkes-Barre, PA 68,197 2003 $6.25
Moosic, PA 27,526 2003 $6.83
Survey Low $4.16

Survey High $6.83
Survey Average $5.75
Income and Expense Pro Forma

The following chart is our opinion of income and expenses for the stabilized year.
REVENUE AND EXPENSE ANALYSIS - STABILIZED (YR. 2)
2004/2005 $/SF
Base Rental Revenue $103,280 $7.38
Expense Reimbursement Revenue 56,235 4.02
TOTAL POTENTIAL GROSS REVENUE $159,515 $11.39

Vacancy and Collection Loss (5,118) (0.37)
EFFECTIVE GROSS REVENUE $154,397 $11.03
OPERATING EXPENSES
Repairs & Maintenance $14,420 $1.03
Utilities (excl. tenant electric) 21,630 1.55
Janitorial 10,815 0.77
General & Administrative 3,605 0.26
Security 1,442 0.10
Insurance 2,884 0.21
Roads / Grounds 3,605 0.26
Management 3,860 0.28
Other 721 0.05
Subtotal Operating $62,982 $4.50
Real Estate Taxes $22,660 $1.62
TOTAL EXPENSES $85,642 $6.12
NET OPERATING INCOME $68,755 $4.91
Capitalization Rate Selection

In addition, we have considered the Korpacz Real Estate Investor Survey.
Going-In Going-In
Property Type Date Cap Rate Cap Rate
Range Average
National Suburban Office Q1-2004 7.0%-12.0% 9.34%
National CBD Office Q1-2004 6.0%-10.50% 8.77%
National Net Lease Q1-2004 6.8%-10.25% 8.28%
Our observations and analysis suggest that a going-in capitalization rate of 8.50 percent
represents reasonable investor criteria under current market conditions. In choosing our
capitalization rate, we have considered the amount of space that Wachovia occupies over the
20 year lease term.
Direct Capitalization Method Conclusion

In the Direct Capitalization Method, we developed an opinion of market value by dividing Year 2
net operating income by a 8.50 percent overall capitalization rate. Our conclusion via the Direct
Capitalization Method is as follows:
Direct Capitalization Method
NET OPERATING INCOME $68,755 $4.91

Sensitivity Analysis (0.50% OAR Spread) Value $/SF NRA
Based on Low-Range of 8.00% $859,438 $61.39
Based on Most Probable Range of 8.50% $808,882 $57.78
Based on High-Range of 9.00% $763,944 $54.57
Reconciled Value $808,882 $57.78

Less Stabilization Expense: $119,131 $8.51
Indicated Value: $689,751 $49.27
Rounded to nearest $25,000 $700,000 $50.00
Once again, the subject property is not operating at a stabilized occupancy level. Because we
have utilized Year 2 income and expenses (the first stabilized year), we have made the
appropriate deduction associated with leasing up the subject over the first year. This deduction
accounts for rent loss, shortfall in operating expense reimbursement, tenant improvements and
leasing commissions. In the case of the subject property, this stabilization expense is placed at
$119,131.
Discounted Cash Flow Method

In the Discounted Cash Flow Method, we employed Argus software to model the income
characteristics of the property and to make a variety of cash flow assumptions. We attempted to
reflect the most likely investment assumptions of typical buyers and sellers in this particular
market segment. The following table illustrates the assumptions used in the discounted cash
flow analysis.
Discounted Cash Flow Assumptions
DISCOUNTED CASH FLOW

MODELING ASSUMPTIONS
Holding Period: 21 Years
Projection Period: 22 Years
Start Date: 7/1/2004
RESERVES FOR REPLACEMENT (PSF) $0.15
VACANCY & COLLECTION LOSS

Global Vacancy: 8.00%
Collection Loss: 2.00%
Total: 10.00%
GROWTH RATES
Market Rent: 3.00%
Consumer Price Index (CPI): 3.00%
Expenses: 3.00%
Real Estate Taxes: 3.00%
RATES OF RETURN
Internal Rate of Return: 9.00%
Terminal Capitalization Rate: 9.50%
Reversionary Sales Cost: 3.00%
LEASING ASSUMPTIONS Market Rent

Market Rent Per Square Foot $10.00
Contract Rent Increase Flat
Lease Type Base Year

Stop, Plus
Electric
Lease Term (years) 5
Free Rent on New Leases (months) 0
Free Rent on Renewals (months) 0
Downtime Between New Leases 9
Renewal Probability 70.00%
TENANT IMPROVEMENTS (PSF) Market Rent

New Leases $10.00
Renewals $2.00
First Generation (shell) $15.00
Leasing Commissions: 4.2 percent of total rent for new leases; 2.1 percent of total rent for
renewal leases.
Tenant Improvements: The second and third floor office space was in shell-like condition as of
the date of inspection. However, it appears that this space could be
renovated and rented. We have estimated an initial tenant improvement
allowance for this portion of the building of $15.00 per square foot.
Contract Rent Increases: Leases are assumed to flat.
Expense Reimbursements: Future tenants are assumed to be responsible for their pro rata share of
increases over base year real estate taxes and operating expenses while
the landlord is responsible for base year expenses and capital
expenditures.
Capital Expenditures: The building was in average condition at the time of our inspection. We
do not foresee any major capital expenditures in the near future.
Terminal Capitalization Rate Selection

A terminal capitalization rate was used to develop an opinion of the market value of the property
at the end of the assumed investment holding period. The rate is applied to the net operating
income in year 22 before making deductions for leasing commissions, tenant improvement
allowances and reserves for replacement. We have developed an opinion of an appropriate
terminal capitalization rate based on indicated rates in current investor surveys.
Terminal Cap Terminal Cap

Property Type Date
Rate Range Rate Average
As a result, we have applied a 9.50 percent terminal capitalization rate in our analysis.
Discount Rate Selection

As previously discussed, Wachovia Bank leased a large part or the entire building for a 20 year
term. According to Standard and Poors, they are currently considered to be an investment
grade tenant with rating of A.
In order to determine an appropriate yield rate to discount our cash flow projections, we have
researched Wachovia Bank’s long term bond yields and compared them to U.S. Treasuries.
According to Bloomberg, Wachovia Bank currently has bonds maturing August 15, 2015 (in
approximately 11.2 years) that are yielding 5.813 percent. Current U.S. Treasuries for a 11.2
year term are yielding 4.797 percent. Therefore, the premium over the U.S. Treasury yield
associated with the Wachovia Bank bond yield is 1.016 percent (5.813% less 4.797%). Since
the Wachovia Bank lease is for 20 years, we have looked at the U.S. Treasury yield on a 20
year term. As of June 3, 2004, 20 year treasuries are yielding 5.15 percent. When we add to this
the Wachovia premium of 1.016 percent, a rate of 6.166 percent is derived. We have then
added an additional premium of 100 to 200 basis points to this rate for illiquidity and
management, which results in a yield rate range of 7.166 percent to 8.166 percent.
We have also looked at the Korpacz Real Estate Investor Survey which indicates the following
internal rates of return.
IRR IRR
Property Type Date
Range Average
The above table summarizes the investment parameters of some of the most prominent
investors currently acquiring similar investment properties in the United States. We realize that
this type of survey reflects target rather than transactional rates. Transactional rates are usually
difficult to obtain in the verification process and are actually only target rates of the buyer at the
time of sale. The property’s performance will ultimately determine the actual yield at the time of
sale after a specific holding period.
Based upon the amount of income derived from the Wachovia Bank lease as it relates to total
cash flow, we have discounted our cash flow and reversionary value projections at an internal
rate of return of 9.00 percent.
Discounted Cash Flow Method Conclusion

Based on the discount rates selected, market value is estimated at $550,000, rounded. Our
cash flow projections and value derivation are presented on the following pages.
Software : ARGUS Ver. 11.0.03 Mount Carmel Date : 9/2/04
File : PA_MtCarmel_036131 50 West 3rd Street Time : 20:53
Property Type : Office/Industrial Mount Carmel, PA Ref# : ADJ
Portfolio : Page :1
SCHEDULE OF PROSPECTIVE CASH FLOW
In Inflated Dollars for the Fiscal Year Beginning 7/1/2004
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13
For the Years Ending Jun-2005 Jun-2006 Jun-2007 Jun-2008 Jun-2009 Jun-2010 Jun-2011 Jun-2012 Jun-2013 Jun-2014 Jun-2015 Jun-2016 Jun-2017
Base Rental Revenue $65,780 $103,280 $103,280 $103,280 $103,280 $106,070 $113,782 $113,782 $113,782 $113,782 $114,593 $124,102 $124,102
Absorption & Turnover Vacancy (14,491) (17,303)
Scheduled Base Rental Revenue 65,780 103,280 103,280 103,280 103,280 91,579 113,782 113,782 113,782 113,782 114,593 106,799 124,102
Expense Reimbursement Revenue 52,931 56,235 58,750 61,342 64,005 65,325 63,705 66,620 69,620 72,712 75,918 73,539 77,207
TOTAL POTENTIAL GROSS REVENUE 118,711 159,515 162,030 164,622 167,285 156,904 177,487 180,402 183,402 186,494 190,511 180,338 201,309
General Vacancy (1,000) (4,094) (4,166) (4,240) (4,316) (4,776) (4,860) (4,945) (5,034) (5,125) (5,642)
Collection Loss (250) (1,024) (1,042) (1,060) (1,079) (823) (1,194) (1,215) (1,236) (1,258) (1,281) (1,038) (1,410)
EFFECTIVE GROSS REVENUE 117,461 154,397 156,822 159,322 161,890 156,081 171,517 174,327 177,221 180,202 184,105 179,300 194,257
OPERATING EXPENSES
Repairs and Maint. 14,000 14,420 14,853 15,298 15,757 16,230 16,717 17,218 17,735 18,267 18,815 19,379 19,961
Utilities 21,000 21,630 22,279 22,947 23,636 24,345 25,075 25,827 26,602 27,400 28,222 29,069 29,941
Janitorial 10,500 10,815 11,139 11,474 11,818 12,172 12,538 12,914 13,301 13,700 14,111 14,534 14,970
G&A 3,500 3,605 3,713 3,825 3,939 4,057 4,179 4,305 4,434 4,567 4,704 4,845 4,990
Security 1,400 1,442 1,485 1,530 1,576 1,623 1,672 1,722 1,773 1,827 1,881 1,938 1,996
Insurance 2,800 2,884 2,971 3,060 3,151 3,246 3,343 3,444 3,547 3,653 3,763 3,876 3,992
Roads/Grounds 3,500 3,605 3,713 3,825 3,939 4,057 4,179 4,305 4,434 4,567 4,704 4,845 4,990
Management 2,937 3,860 3,921 3,983 4,047 3,902 4,288 4,358 4,431 4,505 4,603 4,483 4,856
Other 700 721 743 765 788 811 836 861 887 913 941 969 998
Real Estate Taxes 22,000 22,660 23,340 24,040 24,761 25,504 26,269 27,057 27,869 28,705 29,566 30,453 31,367
TOTAL OPERATING EXPENSES 82,337 85,642 88,157 90,747 93,412 95,947 99,096 102,011 105,013 108,104 111,310 114,391 118,061
NET OPERATING INCOME 35,124 68,755 68,665 68,575 68,478 60,134 72,421 72,316 72,208 72,098 72,795 64,909 76,196
LEASING & CAPITAL COSTS
Tenant Improvements 75,000 26,269 30,453
Leasing Commissions 10,500 8,149 9,447
Reserves 2,100 2,163 2,228 2,295 2,364 2,434 2,508 2,583 2,660 2,740 2,822 2,907 2,994
TOTAL LEASING & CAPITAL COSTS 87,600 2,163 2,228 2,295 2,364 2,434 36,926 2,583 2,660 2,740 2,822 42,807 2,994
CASH FLOW BEFORE DEBT SERVICE ($52,476) $66,592 $66,437 $66,280 $66,114 $57,700 $35,495 $69,733 $69,548 $69,358 $69,973 $22,102 $73,202
& TAXES ========== ========== ========== ========== ========== ========== ========== ========== ========== ========== ========== ========== ==========
Portfolio : Page :2
SCHEDULE OF PROSPECTIVE CASH FLOW
In Inflated Dollars for the Fiscal Year Beginning 7/1/2004
Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Year 22
For the Years Ending Jun-2018 Jun-2019 Jun-2020 Jun-2021 Jun-2022 Jun-2023 Jun-2024 Jun-2025 Jun-2026
Base Rental Revenue $124,102 $124,102 $124,926 $133,194 $135,949 $135,949 $135,949 $242,786 $249,175
Absorption & Turnover Vacancy (20,059) (40,638) (23,254)
Scheduled Base Rental Revenue 124,102 124,102 124,926 113,135 135,949 135,949 135,949 202,148 225,921
Expense Reimbursement Revenue 80,688 84,271 87,984 86,708 89,388 93,419 97,576 5,696 6,751
TOTAL POTENTIAL GROSS REVENUE 204,790 208,373 212,910 199,843 225,337 229,368 233,525 207,844 232,672
General Vacancy (5,741) (5,844) (5,950) (6,541) (6,656) (6,775) (6,874) (13,248)
Collection Loss (1,435) (1,461) (1,487) (1,181) (1,635) (1,664) (1,694) (4,157) (4,653)
EFFECTIVE GROSS REVENUE 197,614 201,068 205,473 198,662 217,161 221,048 225,056 196,813 214,771
OPERATING EXPENSES
Repairs and Maint. 20,559 21,176 21,812 22,466 23,140 23,834 24,549 25,286 26,044
Utilities 30,839 31,764 32,717 33,699 34,710 35,751 36,824 37,928 39,066
Janitorial 15,420 15,882 16,359 16,849 17,355 17,876 18,412 18,964 19,533
G&A 5,140 5,294 5,453 5,616 5,785 5,959 6,137 6,321 6,511
Security 2,056 2,118 2,181 2,247 2,314 2,383 2,455 2,529 2,604
Insurance 4,112 4,235 4,362 4,493 4,628 4,767 4,910 5,057 5,209
Roads/Grounds 5,140 5,294 5,453 5,616 5,785 5,959 6,137 6,321 6,511
Management 4,940 5,027 5,137 4,967 5,429 5,526 5,626 4,920 5,369
Other 1,028 1,059 1,091 1,123 1,157 1,192 1,227 1,264 1,302
Real Estate Taxes 32,308 33,277 34,275 35,304 36,363 37,454 38,577 39,734 40,926
TOTAL OPERATING EXPENSES 121,542 125,126 128,840 132,380 136,666 140,701 144,854 148,324 153,075
NET OPERATING INCOME 76,072 75,942 76,633 66,282 80,495 80,347 80,202 48,489 61,696
LEASING & CAPITAL COSTS
Tenant Improvements 35,304 71,522 40,926
Leasing Commissions 10,952 22,188 12,697
Reserves 3,084 3,176 3,272 3,370 3,471 3,575 3,682 3,793 3,907
TOTAL LEASING & CAPITAL COSTS 3,084 3,176 3,272 49,626 3,471 3,575 3,682 97,503 57,530
CASH FLOW BEFORE DEBT SERVICE $72,988 $72,766 $73,361 $16,656 $77,024 $76,772 $76,520 ($49,014) $4,166
& TAXES ========== ========== ========== ========== ========== ========== ========== ========== ==========
Portfolio : Page :3
PROSPECTIVE PRESENT VALUE
Cash Flow Before Debt Service plus Property Resale
Discounted Annually (Endpoint on Cash Flow & Resale) over a 21-Year Period
For the P.V. of P.V. of P.V. of

Analysis Year Annual Cash Flow Cash Flow Cash Flow
Period Ending Cash Flow @ 8.75% @ 9.00% @ 9.25%
Year 1 Jun-2005 ($52,476) ($48,254) ($48,143) ($48,033)

Year 2 Jun-2006 66,592 56,307 56,049 55,793
Year 3 Jun-2007 66,437 51,657 51,302 50,950
Year 4 Jun-2008 66,280 47,387 46,954 46,526
Year 5 Jun-2009 66,114 43,466 42,970 42,480
Year 6 Jun-2010 57,700 34,882 34,404 33,935
Year 7 Jun-2011 35,495 19,731 19,417 19,108
Year 8 Jun-2012 69,733 35,646 34,997 34,362
Year 9 Jun-2013 69,548 32,690 32,022 31,368
Year 10 Jun-2014 69,358 29,978 29,297 28,634
Year 11 Jun-2015 69,973 27,811 27,117 26,442
Year 12 Jun-2016 22,102 8,078 7,858 7,645
Year 13 Jun-2017 73,202 24,600 23,877 23,176
Year 14 Jun-2018 72,988 22,555 21,841 21,152
Year 15 Jun-2019 72,766 20,677 19,977 19,302
Year 16 Jun-2020 73,361 19,169 18,478 17,813
Year 17 Jun-2021 16,656 4,002 3,849 3,701
Year 18 Jun-2022 77,024 17,017 16,328 15,669
Year 19 Jun-2023 76,772 15,598 14,932 14,296
Year 20 Jun-2024 76,520 14,295 13,653 13,042
Year 21 Jun-2025 (49,014) (8,420) (8,023) (7,647)
Total Cash Flow 1,097,131 468,872 459,156 449,714
Property Resale @ 9.50% Cap 629,949 108,216 103,121 98,278
Total Property Present Value $577,088 $562,277 $547,992
========== ========== ==========
Rounded to Thousands $577,000 $562,000 $548,000

========== ========== ==========
Per SqFt 41.22 40.16 39.14
PERCENTAGE VALUE DISTRIBUTION
Assured Income 86.66% 87.35% 88.03%

Prospective Income (5.41%) (5.69%) (5.96%)
Prospective Property Resale 18.75% 18.34% 17.93%
========== ========== ==========
100.00% 100.00% 100.00%
Reconciliation Within the Income Capitalization Approach
SUMMARY OF INCOME CAPITALIZATION METHODS

Value Per Sq. Ft.
Value Indicated by the Discounted Cash Flow Method: $550,000 $39.29
Value Indicated by the Direct Capitalization Method: $700,000 $50.00
We have placed greater reliance on the discounted cash flow analysis. Therefore, our opinion
of market value via the Income Capitalization Approach is as follows:
Value Conclusion: $550,000 $39.29
RECONCILIATION AND FINAL VALUE OPINION
Valuation Methodology Review and Reconciliation

conclusion.
The approaches indicated the following:
Cost Approach: $600,000

Sales Comparison Approach: $500,000
Income Capitalization Approach: $550,000
Because the subject property is leased on a long-term basis to a credit tenant, we have given
most weight to the Income Capitalization Approach This mirrors the methodology that a
purchaser of a property like the subject would place most emphasis on.
Based on our Complete Appraisal as defined by the Uniform Standards of Professional
Appraisal Practice, we have developed an opinion that the “as is” market value of the Leased
Fee estate of the referenced property, subject to the assumptions, limiting conditions,
certifications, and definitions, on June 17, 2004 was:
FIVE HUNDRED FIFTY THOUSAND DOLLARS
$550,000
“AS DARK” VALUE
In order to estimate the “As Dark” Value, we have utilized the Direct Capitalization Method of the
Income Capitalization Approach. We first derived the Fee Simple Stabilized Market Value by
estimating market lease terms for the entire building which is assumed to be vacant. We then
deducted rent loss based upon an assumed average lease-up period, tenant improvements,
leasing commissions, and operating expenses and real estate taxes over the absorption period
to derive “As Dark” Value.
x Our market rent and expense estimates were based upon the rent and expense
comparables cited in the previous section of the report.
x Our vacancy estimate was based upon current market vacancy and our perception of
average vacancy over the long term.
x The capitalization rate was based upon the improved sales illustrated in the Sales
Comparison Approach and the Korpacz Real Estate Investor Survey previously cited.
x We have assumed a lease-up to stabilized occupancy of 9 months. As this lease-up is
assumed to occur evenly over the 9 month absorption period, we have used an average of 9
months to calculate rent loss.
x Tenant improvements, leasing commissions and holding costs were based up on our
conclusions within the previous section of the report.
Please refer to the following two charts for our derivation of “As Dark” Value.
“AS DARK” VALUE
MARKET VALUE - FEE SIMPLE - STABILIZED
Building Area (sf) 14,000
SF Mkt Rate/SF Income Total Income Avg.Rent/sf

Wachovia Space 9,000 $10.00 $90,000 $140,000 $10.00
Non Bank Space 5,000 $10.00 $50,000 Less: Operating Expenses $6.10
NNN Average Rent $3.90
POTENTIAL GROSS INCOME Size Avg.Rent/sf

14,000 $3.90 $54,600
RECOVERIES
R.E. Taxes $22,660
Operating Expenses $62,982
Total Recoveries $85,642
TOTAL GROSS INCOME $140,242
LESS: Vacancy 10.00% $14,024
EFFECTIVE GROSS INCOME $126,218
EXPENSES
Recoverable
R.E. Taxes $1.62 psf $22,660
Operating Expenses $4.50 psf $62,982
Unrecoverable
Reserves $0.15 psf $2,100
Total Expenses $87,742
NET OPERATING INCOME $38,476
VALUE CONCLUSION-STABILIZED FEE SIMPLE

Overall Capitalization Rate 9.50%
Value Conclusion via Income Capitalization Approach $405,008
ROUNDED: $400,000
Per SF $28.57
“AS DARK” VALUE
"AS DARK" MARKET VALUE ESTIMATE
ASSUMPTIONS
BUILDING SQUARE FOOTAGE 14,000
ESTIMATED AVERAGE LEASE-UP PERIOD ( in months ) 9
ESTIMATED TENANT IMPROVEMENTS / SF $10.00
ESTIMATED LEASING COMMISSIONS / SF $0.82
ESTIMATED YEAR 1 MARKET RENT $54,600
ESTIMATED YEAR ONE R.E.TAXES $22,660

ESTIMATED YEAR ONE OPERATING EXPENSES $62,982
ESTIMATED YEAR ONE R.E.TAXES AND OPERATING $85,642
FEE SIMPLE STABILIZED MARKET VALUE $400,000
Less: Rent Loss $40,950

Tenant Improvements $140,000
Leasing Commissions $11,466
Real Estate Taxes and Operating $64,232
Total Lease-Up Cost Deduction $256,648
"AS DARK" MARKET VALUE $143,353
ROUNDED $150,000
Per SF $10.71
INSURABLE VALUE
Insurable Value is directly related to the portion of the real estate which is covered under the
asset’s insurance policy. We have based this opinion on the building’s replacement cost new
(RCN) which has no direct correlation with its actual market value.
The replacement cost new is the total construction cost of a new building built using modern
technology, materials, standards and design, but built to the same specifications of and with the
same utility as the building being appraised. For insurance purposes, replacement cost new
includes all direct costs necessary to construct the building improvements. Items which are not
considered include land value, site improvements, indirect costs, accrued depreciation and
entrepreneurial profit. To develop an opinion of insurable value, exclusions for below-grade
foundations and architectural fees must be deducted from replacement cost new.
We developed an opinion of replacement cost new by using the Calculator Cost Method
developed by Marshall Valuation Service, a nationally recognized cost estimating company
which estimates construction costs for all types of improvements. Marshall Valuation Service
revises its cost factors monthly and adjusts them to reflect regional and local cost variations.
INSURABLE VALUE
Replacement Cost New (RCN) GBA (SF) $/GBA Sub-Total

Building Improvements
Base Cost 14,000 $149.70 $2,095,800
Sprinklers 14,000 0.00 0
Subtotal 14,000 $149.70 $2,095,800
Multipliers
Current Cost 1.060
Local Area 1.010
Perimeter 1.000
Building Height 1.000
Product of Multipliers x 1.071
Adjusted Base Building Cost $2,243,763
Less: Insurance Exclusions
Foundations Below Grade -5.00%
Piping Below Grade (Negligible) 0.00%
Architect Fees -6.00%
Total Insurance Exclusion Adjustment -11.00% ($246,814)
Insurable Value $1,996,949

Rounded to nearest $100,000 6 $2,000,000
Source: Marshall Valuation Service Section: 15 Quality: Good

Page: 21 Class: C
Date: 11/03 Type: Bank/Branches
ASSUMPTIONS AND LIMITING CONDITIONS
"Appraisal" means the appraisal report and opinion of value stated therein, to which these
Assumptions and Limiting Conditions are annexed.
"Property" means the subject of the Appraisal.
"C&W" means Cushman & Wakefield, Inc. or its subsidiary which issued the Appraisal.
"Appraiser" or “Appraisers” means the employee(s) of C&W who prepared and signed the
Appraisal.
General Assumptions
This appraisal is made subject to the following assumptions and limiting conditions:
1. No opinion is intended to be expressed and no responsibility is assumed for the legal
description or for any matters which are legal in nature or require legal expertise or
specialized knowledge beyond that of a real estate appraiser. Title to the Property is
assumed to be good and marketable and the Property is assumed to be free and clear of all
liens unless otherwise stated. No survey of the Property was undertaken.
2. The information contained in the Appraisal or upon which the Appraisal is based has been
gathered from sources the Appraiser assumes to be reliable and accurate. Some of such
information may have been provided by the owner of the Property. Neither the Appraiser nor
C&W shall be responsible for the accuracy or completeness of such information, including
the correctness of opinions, dimensions, sketches, exhibits and factual matters.
3. The opinion of value is only as of the date stated in the Appraisal. Changes since that date
in external and market factors or in the Property itself can significantly affect property value.
4. The Appraisal is to be used in whole and not in part. No part of the Appraisal shall be used
in conjunction with any other appraisal. Publication of the Appraisal or any portion thereof
without the prior written consent of C&W is prohibited. Except as may be otherwise stated in
the letter of engagement, the Appraisal may not be used by any person other than the party
to whom it is addressed or for purposes other than that for which it was prepared. No part of
the Appraisal shall be conveyed to the public through advertising, or used in any sales or
promotional material without C&W's prior written consent. Reference to the Appraisal
Institute or to the MAI designation is prohibited, except as it relates to the collaboration
between C&W and the Appraisal Institute relative to the Real Estate Outlook publication.
5. Except as may be otherwise stated in the letter of engagement, the Appraiser shall not be
required to give testimony in any court or administrative proceeding relating to the Property
or the Appraisal.
6. The Appraisal assumes (a) responsible ownership and competent management of the
Property; (b) there are no hidden or unapparent conditions of the Property, subsoil or
structures that render the Property more or less valuable (no responsibility is assumed for
such conditions or for arranging for engineering studies that may be required to discover
them); (c) full compliance with all applicable federal, state and local zoning and
environmental regulations and laws, unless noncompliance is stated, defined and analyzed
in the Appraisal; and (d) all required licenses, certificates of occupancy and other
governmental consents have been or can be obtained and renewed for any use on which
the value opinion contained in the Appraisal is based.
7. The physical condition of the improvements analyzed within the Appraisal is based on visual
inspection by the Appraiser or other person identified in the Appraisal. C&W assumes no
responsibility for the soundness of structural members nor for the condition of mechanical
equipment, plumbing or electrical components.
8. The projected potential gross income referred to in the Appraisal may be based on lease
summaries provided by the owner or third parties. The Appraiser has not reviewed lease
documents and assumes no responsibility for the authenticity or completeness of lease
information provided by others. C&W recommends that legal advice be obtained regarding
the interpretation of lease provisions and the contractual rights of parties.
9. The projections of income and expenses are not predictions of the future. Rather, they are
the Appraiser's opinion of current market thinking on future income and expenses. The
Appraiser and C&W make no warranty or representation that these projections will
materialize. The real estate market is constantly fluctuating and changing. It is not the
Appraiser's task to predict or in any way warrant the conditions of a future real estate
market; the Appraiser can only reflect what the investment community, as of the date of the
Appraisal, envisages for the future in terms of rental rates, expenses, supply and demand.
10. Unless otherwise stated in the Appraisal, the existence of potentially hazardous or toxic
materials which may have been used in the construction or maintenance of the
improvements or may be located at or about the Property was not analyzed in arriving at the
opinion of value. These materials (such as formaldehyde foam insulation, asbestos
insulation and other potentially hazardous materials) may adversely affect the value of the
Property. The Appraisers are not qualified to detect such substances. C&W recommends
that an environmental expert be employed to determine the impact of these matters on the
opinion of value.
11. Unless otherwise stated in the Appraisal, compliance with the requirements of the
Americans With Disabilities Act of 1990 (ADA) has not been analyzed in arriving at the
opinion of value. Failure to comply with the requirements of the ADA may adversely affect
the value of the property. C&W recommends that an expert in this field be employed.
12. Additional work requested by the client beyond the scope of this assignment will be billed at
our prevailing hourly rate. Preparation for court testimony, update valuations, additional
research, depositions, travel or other proceedings will be billed at our prevailing hourly rate,
plus reimbursement of expenses.
13. The reader acknowledges that Cushman & Wakefield of Pennsylvania has been retained
hereunder as an independent contractor to perform the services described herein and
nothing in this agreement shall be deemed to create any other relationship between us. This
assignment shall be deemed concluded and the services hereunder completed upon
delivery to you of the appraisal report discussed herein.
14. This study has not been prepared for use in connection with litigation and this document is
not suitable for use in a litigation action. Accordingly, no rights to expert testimony, pretrial or
other conferences, deposition, or related services are included with this appraisal. If, as a
result of this undertaking, C&W or any of its principals, its appraisers or consultants are
requested or required to provide any litigation services, such shall be subject to the
provisions of the C&W engagement letter or, if not specified therein, subject to the
reasonable availability of C&W and/or said principals or appraisers at the time and shall
further be subject to the party or parties requesting or requiring such services paying the
then-applicable professional fees and expenses of C&W either in accordance with the
provisions of the engagement letter or arrangements at the time, as the case may be.
Extraordinary Assumptions
An extraordinary assumption is defined as “an assumption, directly related to a specific
assignment, which, if found to be false, could alter the appraiser’s opinions or conclusions.
Extraordinary assumptions presume as fact otherwise uncertain information about physical,
legal or economic characteristics of the subject property or about conditions external to the
property, such as market conditions or trends, or the integrity of data used in an analysis”
(USPAP).
The appraisal employs the following extraordinary assumptions:
1) All existing leases to third party tenants on non Wachovia Bank space are assumed to be
gross whereby the landlord is responsible for all expenses. All renewal options on this space are
not assumed to be exercised.
2) All space on a month to month basis is assumed to be vacant.
3) The annual Base Rent for the Wachovia Bank space over the first 5 years of the lease is
assumed to be $5.92 per square foot increasing 1.5 percent every 5 years over the 20 year
initial lease term.
4) We have assumed the 20 year Wachovia Bank lease commences as of our effective date of
valuation and that none of the six 5 year renewal options are exercised as it is uncertain as to
the Bank’s needs in 20 years.
5) The building square footage used to estimate market value is based upon information
supplied to us by the buyer. We have assumed that this figure is an accurate reflection of the
subject building's size.
Hypothetical Conditions
A hypothetical condition is defined as “that which is contrary to what exists, but is supposed for
the purpose of analysis. Hypothetical conditions assume conditions contrary to known facts
about physical, legal, or economic characteristics of the subject property or about conditions
external to the property, such as market conditions or trends, or the integrity of data used in an
analysis” (USPAP).
This appraisal employs the following hypothetical condition:
1) As the subject property is leased, the "As Dark" Value assumes the entire property is vacant
and available for lease at current market terms.
CERTIFICATION OF APPRAISAL
We certify that, to the best of our knowledge and belief:

1. The statements of fact contained in this report are true and correct.
2. The reported analyses, opinions, and conclusions are limited only by the reported
assumptions and limiting conditions, and are our personal, impartial, and unbiased
professional analyses, opinions, and conclusions.
3. We have no present or prospective interest in the property that is the subject of this report,
and no personal interest with respect to the parties involved.
4. We have no bias with respect to the property that is the subject of this report or to the
parties involved with this assignment.
5. Our engagement in this assignment was not contingent upon developing or reporting
predetermined results.
6. Our compensation for completing this assignment is not contingent upon the development or
reporting of a predetermined value or direction in value that favors the cause of the client,
the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a
subsequent event directly related to the intended use of this appraisal.
7. Our analyses, opinions, and conclusions were developed, and this report has been
prepared, in conformity with the Uniform Standards of Professional Appraisal Practice of the
Appraisal Foundation and the Code of Professional Ethics and the Standards of
Professional Appraisal Practice of the Appraisal Institute.
8. Daniel C. Rudderow made a personal inspection of the property that is the subject of this
report. Gerald B. McNamara, MAI, Managing Director, Valuation Advisory Services,
reviewed and approved the report but did not inspect the property.
9. No one provided significant real property appraisal assistance to the persons signing this
report.
10. The use of this report is subject to the requirements of the Appraisal Institute relating to
review by its duly authorized representatives.
11. As of the date of this report, Appraisal Institute continuing education Gerald B. McNamara,
MAI is current.
Daniel C. Rudderow Gerald B. McNamara, MAI

Appraiser Managing Director
PA Certified General Appraiser PA Certified General Appraiser
License No. GA003341 License No. GA000267L
ADDENDA
Addenda Contents
ADDENDUM A: Argus Rent Roll
ADDENDUM B: Argus Lease Expiration – First Term
ADDENDUM C: Qualifications of the Appraisers
Portfolio : Page :1
PRESENTATION RENT ROLL & CURRENT TERM TENANT SUMMARY
As of Jul-2004 for 14,000 Square Feet
DESCRIPTION AREA BASE RENT RENT ADJUSTMENTS & CATEGORIES ABATEMENTS REIMBURSEMENT LEASING COSTS UPON EXPIRATION
Tenant Name Floor Rate & Amount CPI & Current Months Pcnt Description of Imprvmnts Commssns Assumption about
Type & Suite Number SqFt per Year Changes Changes Porters' Wage to to Operating Expense Rate Rate subsequent terms
Lease Dates & Term Bldg Share per Month on to Miscellaneous Abate Abate Reimbursements Amount Amount for this tenant
1 Wachovia $5.92 Jul-2009 $6.01 - - - Net: Pays a full - - Market

Office, Suite: 1 9,000 $53,280 Jul-2014 $6.10 pro-rata share of See assumption:
Jul-2004 to Jun-2024 64.29% $0.49 Jul-2019 $6.19 all reimbursable Wachovia
240 Months $4,440 expenses.
2 Speculative Tenant 1 $10.00 - - - - - Gross: Pays the $15.00 $2.10 Market

Office, Suite: 2 5,000 $50,000 increases over a 4.20% See assumption:
Apr-2005 to Mar-2010 35.71% $0.83 base year ending $75,000 $10,500 Non Bank Space
60 Months $4,167 Jun-2005: $5.88
@ 100% of Mkt
Total Occupied SqFt 14,000

Total Available SqFt 0
Portfolio : Page :1
SUPPORTING SCHEDULE -- DETAILED LEASE EXPIRATION SCHEDULE (FIRST TERM ONLY)
Market Base Rent Expiration Percent of
No. Tenant Suite Leasing /SqFt/Yr Date Square Feet Total
2. Speculative Tenant 1 2 Non Bank S 7.50 3/10 5,000 35.7
========== ==========
Total for Year Ending Ju 5,000 35.7%
1. Wachovia 1 Wachovia 6.19 6/24 9,000 64.3
========== ==========
Total for Year Ending Ju 9,000 64.3%
Building Total 14,000 100.0%
PROFESSIONAL QUALIFICATIONS
Daniel C. Rudderow
Staff Appraiser, Valuation Services, Advisory Group
Mr. Rudderow joined Cushman and Wakefield as a junior appraiser in November 1999 and was
trained under the direction of Michael A. Lagreca, MAI, Associate Director of the Philadelphia
Office. After a three-year training period, Mr. Rudderow was designated a Staff Appraiser in
January 2003.
Experience
Appraisal and consulting assignments have included office buildings, shopping centers, industrial
complexes, commercial properties, apartment complexes, investment properties and vacant land,
principally in Pennsylvania, New Jersey and Delaware.
Education
Muhlenberg College, Allentown, Pennsylvania
Bachelor of Arts - 1999
Appraisal Education
Appraisal Institute, Chicago, Illinois
Course 110:Appraisal Principles –2000
Course 120:Appraisal Procedures-2000
Course 310: Basic Income Capitalization – 2000
Course 410:Standards of Professional Practice, Part A 1999
Course 510: Advanced Income Capitalization - 2001
Course 540 Report Writing and Valuation Analysis - 2002
Professional Affiliations
Affiliate member, Appraisal Institute
Associate Private Member, Urban Land Institute
PROFESSIONAL QUALIFICATIONS
Gerald B. McNamara, MAI

Managing Director, Valuation Services, Advisory Group
Following college, Mr. McNamara worked for 11 years (1973 to 1984) in branch operations for
Beneficial Savings Bank of Philadelphia attaining the rank of Assistant Vice President. Mr.
McNamara joined Cushman and Wakefield as a staff appraiser in 1984. Received the MAI
designation of the Appraisal Institute in 1992. In March 1995, Mr. McNamara was designated as
an Associate Director of the firm. In July 1997, Mr. McNamara became the Manager of the
Philadelphia office of the Valuation Advisory Services Group, now Valuation Services. In 1998,
he was designated as a Director and in 2002 as a Managing Director. Current responsibilities
include managing seven appraisers, two of which hold the MAI designation.
Experience
Appraisal and consulting assignments have included vacant land, office buildings, shopping
centers, regional malls, industrial complexes, commercial properties, apartment complexes and
investment properties, principally in Pennsylvania, New Jersey and Delaware. Mr. McNamara is
also a member of the firm’s Retail Property Group, which specializes in the valuation and
investment counseling on retail properties. Qualified as an expert witness in US Bankruptcy
Court for the Northeastern District of Pennsylvania and before assessment appeal proceedings
in Philadelphia, Montgomery and Bucks counties in Pennsylvania.
Education
Saint Vincent College, Latrobe, Pennsylvania
Bachelor of Arts - 1972
Temple University, Philadelphia, Pennsylvania

Graduate Program in Finance - 1975-1978
Required Courses of Study for State Licensure
Appraisal Education
Successfully completed all courses and experience requirements to qualify for the MAI
designation. Also, he has completed the requirements of the continuing education program of
the Appraisal Institute.
Memberships, Licenses and Professional Affiliations

Member, Appraisal Institute (MAI Designation #9380)
Delaware Certified General Appraiser (Certificate #X1-0000050)
Maryland Certified General Appraiser (Certificate #10034)
New Jersey Certified General Appraiser (Certificate #42RG 00081100)
Ohio Certified General Appraiser (Certificate #391901)
Pennsylvania Certified General Appraiser (Certificate #GA-000267-L)
Pennsylvania Real Estate Broker (License #AB-047948-L)
West Virginia Certified General Appraiser (License #328)
PROFESSIONAL QUALIFICATIONS Gerald B. McNamara, MAI
Mr. McNamara is the director of the Government Affairs/Legislative Committee of the

Philadelphia chapter of the Appraisal Institute. Also serves on the ARGUS Advisory Board of
the Realm Company of Dallas, Texas, which provides the primary software utilized for
investment analysis.
Special Awards
Mr. McNamara was awarded Cushman & Wakefield’s Philadelphia office 2000 Service
Excellence Award which is awarded to that professional receiving the highest score on client
responses for service quality.
Phase 1 Environmental Site Assessment Report
PHASE I ENVIRONMENTAL SITE ASSESSMENT
MOUNT CARMEL
50 & 51 WEST 3RD STREET
MOUNT CARMEL, PENNSYLVANIA 17851
Prepared for:
American Financial Realty Trust

Jenkintown, Pennsylvania
Prepared by:
ENTRIX, Inc.
New Castle, Delaware
Project Number: 7070930
June 2004
MOUNT CARMEL
50 & 51 WEST 3RD STREET
MOUNT CARMEL, PENNSYLVANIA 17851
Prepared for:

1725 The Fairway
Jenkintown, Pennsylvania 19046
Prepared by:
ENTRIX, Inc.
10 Corporate Circle, Suite 300
New Castle, Delaware 19720
(302) 395-1919
Written by: Reviewed by:
Stephen G. Kilper, P. E. Lawrence D. Malizzi

Senior Consultant General Manager
Project Number: 7070930
June 2004

Mount Carmel
50 & 51 West 3rd Street
Mount Carmel, Pennsylvania 17851
TABLE OF CONTENTS
EXECUTIVE SUMMARY ........................................................................................................III
1.0 INTRODUCTION AND LIMITATIONS ....................................................................... 1-1

1.1 INTRODUCTION ................................................................................................................. 1-1
1.2 LIMITATIONS..................................................................................................................... 1-2
2.0 SITE DESCRIPTION AND INSPECTION .................................................................... 2-1
2.1 SUBJECT PROPERTY SETTING ............................................................................................ 2-1
2.1.1 Location ................................................................................................................... 2-1
2.1.2 Topography .............................................................................................................. 2-1
2.1.3 Wetlands/Hydrology ................................................................................................ 2-1
2.2 SUBJECT PROPERTY VICINITY ........................................................................................... 2-2
2.3 SUBJECT PROPERTY OPERATIONS ..................................................................................... 2-2
2.3.1 Description of Subject Property Operations ............................................................ 2-2
2.3.2 Building/Grounds..................................................................................................... 2-2
2.3.3 Utilities..................................................................................................................... 2-3
2.3.4 Housekeeping........................................................................................................... 2-3
2.3.5 Chemical Materials and Petroleum Products Storage and Use................................ 2-4
2.3.6 Waste Generation, Storage, and Disposal................................................................ 2-4
2.3.7 Aboveground Storage Tanks ................................................................................... 2-5
2.3.8 Underground Storage Tanks .................................................................................... 2-5
2.3.9 Wells ........................................................................................................................ 2-5
2.3.10 Wastewater Management......................................................................................... 2-5
2.3.11 Stormwater Management ......................................................................................... 2-6
2.3.12 Potential Asbestos-Containing Materials ................................................................ 2-6
2.3.13 Potential Polychlorinated Biphenyl-Containing Equipment.................................... 2-6
2.3.14 Radon ....................................................................................................................... 2-7
2.3.15 Mold......................................................................................................................... 2-8
2.3.16 Other Features/Conditions ....................................................................................... 2-8
3.0 REGULATORY AGENCY RECORDS REVIEW ........................................................ 3-1
3.1 REGULATORY AGENCY DATABASE INFORMATION............................................................ 3-1
3.2 REGULATORY AGENCY CONTACT INFORMATION ............................................................. 3-4
4.0 HISTORICAL LAND USE............................................................................................... 4-1
5.0 SUMMARY OF RECOGNIZED ENVIRONMENTAL CONDITIONS ..................... 5-1

5.1 SUBJECT PROPERTY .......................................................................................................... 5-1
5.2 NEIGHBORING PROPERTIES ............................................................................................... 5-1
Copyright ENTRIX, Inc. 2004 i Privileged Document

6.0 SUMMARY OF REFERENCES...................................................................................... 6-1
LIST OF TABLES
Table E-1. Summary of Environmental Findings .......................................................................... v
Table 3-1. Summary of Researched Databases........................................................................... 3-2
Table 3-2. Regulatory Agency Database Sites Within ¼ Mile of the Subject Property............. 3-3
Table 4-1. Historical Land Use Summary .................................................................................. 4-1
LIST OF FIGURES
Figure 1 - Site Location Map
Figure 2 - Site Vicinity and Layout Map
LIST OF APPENDICES
Appendix A – Site Photographs
Appendix B – Environmental Data Resources Report
Appendix C – Historical Information
Appendix D – Previously Produced Reports
Appendix E – Staff Qualifications
Copyright ENTRIX, Inc. 2004 ii Privileged Document

EXECUTIVE SUMMARY
Mount Carmel
ENTRIX, Inc. (ENTRIX) has completed a Phase I Environmental Site Assessment (ESA) of the
commercial properties located at 50 and 51 West 3rd Street in the Borough of Mount Carmel,
Northumberland County, Pennsylvania (Subject Property), for the benefit of the American Financial
Realty Trust. The project scope-of-work was designed and executed to assess the potential for recognized
environmental conditions associated with the real property.
The project goals were achieved by application of industry-standard research and site inspection protocols
for such assessments. Specifically, the project scope-of-work was based on the American Society for
Testing and Materials (ASTM) Standard Practice for Environmental Site Assessments: Phase I
Environmental Site Assessment Process (E 1527-00).
The Subject Property consists of a 3-story, 14,000 square foot building constructed in the 1920’s, and a
motor bank located across West 3rd Street including a building of approximately 420 square feet. The
building is occupied by Wachovia Bank. Operations conducted at the Subject Property include:
The main bank building is utilized as a commercial bank branch and was built between 1913 and 1920 as
a bank building. The first floor includes the bank lobby and offices, while the second floor is used as a
training center. The third floor is vacant with an unfinished renovation. The motor bank is located across
West 3rd Street from the main building and includes the motor bank and an asphalt parking lot. The motor
bank was constructed between 1978 and 1980. The area in the immediate vicinity of the properties
includes a gas station and mini-mart, residential properties, and commercial shops.
No aboveground (AST) or underground storage tanks (UST) have been utilized on the Subject Property.
Additionally, no significant volumes of hazardous substances are stored on-site.
Two leaking underground storage tank (LUST) sites are located within ½ mile of the Subject Property,
both of which are closed. Four UST sites are located ¼ mile of the Subject Property. Impacts to the
Subject Property, if any, are unknown.
Recognized Environmental Condition:

The buildings located on the Subject Property were constructed prior to 1980 and, therefore, ACM’s may
have been used during the building construction.
Recommendation:
An asbestos survey should be considered to determine if ACM’s are present. If identified through
sampling and analysis, the ACM’s should be abated and/or managed.

The Subject Property is located in an area of high radon.
Recommendation:
Radon testing should be conducted (at a minimum) to verify whether high levels of radon exist. If high
levels of radon are discovered, the installation of a radon mitigation system should be considered.
Copyright ENTRIX, Inc. 2004 iii Privileged Document


No recognized environmental conditions were identified in conjunction with neighboring properties.
Recommendation:
No recommendation.
Copyright ENTRIX, Inc. 2004 iv Privileged Document

Table E-1. Summary of Environmental Findings

Conclusions
Environmental
Report Maintenance File Review
No Potential Issue Liability,
Issue Page or Warranted
Further – Phase II Remedial
Reference Operations (Client or
Action Warranted Action
Issues regulatory)
Warranted
Housekeeping 2-3
Chemical Materials &

Petroleum Products 2-3
Storage & Use
Waste Generation,
2-4
Storage, & Disposal
Aboveground Storage
2-4
Tanks
Underground Storage
2-5
Tanks
Wells 2-5
Wastewater
2-5
Management
Stormwater
2-6
Management
Potential Asbestos-
2-6
Containing Materials
Polychlorinated
2-6
Biphenyls
Radon 2-6
Mold 2-7
Other: 2-7
Subject Property
3-1
Environmental Records
Neighboring Properties
3-1
Environmental Records
Copyright ENTRIX, Inc. 2004 v Privileged Document

Mount Carmel/Mount Carmel, Pennsylvania
1.0 INTRODUCTION AND LIMITATIONS
1.1 INTRODUCTION
ENTRIX, Inc. (ENTRIX) was retained by American Financial Realty Trust to conduct a Phase I
Environmental Site Assessment (ESA) of the following Subject Property:
Mount Carmel
The purpose of the assessment was to identify potential environmental issues due to current and historical
activities conducted on or near the Subject Property. During the site inspection, environmental conditions
of the Subject Property and neighboring properties were noted. Additional information used to evaluate
the Subject Property was obtained from historical and regulatory agency sources. The environmental
assessment was conducted based on the methods and procedures described in the American Society for
Testing and Materials (ASTM) Standard Practice for Environmental Site Assessments: Phase I
Environmental Site Assessment Process (E 1527-00). Information regarding the site inspection is
presented below:
Date(s) of site inspection: May 27, 2004.
Name(s) of ENTRIX staff that performed the site inspection: Mr. Stephen G. Kilper.
Name(s) of Subject Property representatives providing information during site inspection:
Affiliation with Subject Property

Name
Responsibilities/Title Dates of Affiliation
Mr. Mike Boyko Property Manager 1998 to Present
At the time of the site inspection, the Subject Property status was:
active/occupied vacant/closed other:
undergoing occupancy undergoing closure
At the time of the site inspection, the Subject Property was utilized/recently utilized as:
commercial office facility bank branch with adjacent motor bank
bank branch other:
The Northumberland County Tax Assessors Office searched diligently for the property records card for
the Subject Property, but was unable to find cards for either the main bank building property or the motor
bank property. According to their map, they have the property listed as being owned by Liberty State
Bank.
Copyright ENTRIX, Inc. 2004 1-1 Privileged Document

1.2 LIMITATIONS
An ENTRIX Phase I ESA is limited to visual observations of site conditions on the day inspected, review
of readily available and relevant data and statements made and information provided by the client, his
agents, outside parties and regulatory agencies. ENTRIX has exercised due diligence and customary care
in the conduct of its assessment. The Phase I ESA is a limited and non-exhaustive survey that is intended
to evaluate whether readily available information indicates that the historic or current use of the Subject
Property has resulted in contamination by hazardous substances or waste. As a result, without a
comprehensive sampling and analysis program or implementation of services beyond the original scope-
of-work, certain conditions, including, but not limited to those summarized below, may not be revealed:
x Naturally occurring toxic substances or elements found in the subsurface soils, rocks or water;
x Toxic substances commonly found in current habitable environments, such as, stored household
products, building materials, and consumables;
x Biological or infectious agents and pathogens;
x Contaminant plumes (liquid or gaseous) below the surface from a remote or unknown source;
x Contaminants or conditions that do not violate current regulatory standards, but may violate such
standards in the future; and
x Unknown, reported and not readily visible site contamination.
In preparing this report, ENTRIX has reviewed historical records, conducted interviews with certain
private and public officials, and performed an on-site visual inspection of the property. ENTRIX has
examined and relied upon documents referenced in the report and has relied on oral statements made by
certain individuals. ENTRIX has not conducted an independent examination of the facts contained in
referenced materials and statements. ENTRIX has assumed the genuineness of the documents and that
the information provided in documents or statements is true and accurate. Based on time constraints of
the project, some regulatory files (not readily available) could not be reviewed. ENTRIX has prepared
this report in a professional manner, using that degree of skill and care exercised for similar projects
under similar conditions by reputable and competent environmental consultants. ENTRIX shall not be
responsible for conditions or consequences arising from relevant facts that were concealed, withheld, or
not fully disclosed at the time the report was prepared. ENTRIX also notes that the facts and conditions
referenced in this report may change over time and the conclusions and recommendations set forth herein
are applicable only to the facts and conditions as described at the time of this report and the site
inspection. ENTRIX believes the conclusions stated herein to be factual, but no guarantee is made or
implied.
This report has been prepared for the benefit of American Financial Realty Trust. The information
contained in this report, including all exhibits and attachments, may not be used by any other party
without the express written consent of ENTRIX. The use of this report by third parties shall be at their
own risk.

2.0 SITE DESCRIPTION AND INSPECTION
2.1 SUBJECT PROPERTY SETTING
2.1.1 Location
The name of the facility is: Mount Carmel.
The physical address of the Subject Property is: 50 and 51 West 3rd Street.
City, County (Parish), State: Mount Carmel, Northumberland County, Pennsylvania.
Comments or issues regarding the location of the Subject Property: The main bank building is on the
southeast corner of West 3rd Street and South Maple Streets. The motor bank is located on the northeast
corner of the same intersection.
The location of the Subject Property is shown in Figure 1.
2.1.2 Topography
The topography of the Subject Property is characterized below:
flat (0% slope) gentle relief (0%-1% slope)
moderate relief (1%-3% slope) significant relief (>3% slope)
Average elevation of the Subject Property (above mean sea level): 1,087 feet.
2.1.3 Wetlands/Hydrology
The Subject Property was inspected for potential wetlands and water bodies. For purposes of this report,
potential wetlands include areas that are saturated with water or covered by shallow water and support
hydrophytic vegetation (cattails, fern, bald cypress, etc.). Wetlands do not include constructed drainage
ditches and retention ponds that are maintained for the purpose of stormwater or wastewater control. A
wetlands delineation study was not included in the scope-of-work for the Phase I ESA.
Yes No Potential wetlands were observed on the Subject Property.
Yes No Potential wetlands were observed immediately adjacent to the Subject Property.
Yes No A permanent body of water and/or other standing water was observed on the Subject
Property.
Name of the nearest permanent water body in relation to the Subject Property: Shamokin Creek.
Distance and direction of the water body in relation to the Subject Property: 960 feet north.

2.2 SUBJECT PROPERTY VICINITY
During the site inspection, land use on properties adjacent to the Subject Property was observed to be:
undeveloped commercial/retail heavy industrial
residential light industrial parking lot
vacant building(s) developed but vacant lot(s) agricultural
restaurant(s) auto service/gas station(s) other:
In general, land use in the areas surrounding the Subject Property consists of:
undeveloped commercial/retail heavy industrial
residential light industrial agricultural
other:
Property use in the vicinity of the Subject Property is portrayed in Figure 2. Details concerning properties
located proximal to the Subject Property, which were identified within regulatory agency databases, are
provided in Section 3.0.
Applicable photographs: Appendix A, Photograph(s) #1 through #5.
2.3 SUBJECT PROPERTY OPERATIONS
2.3.1 Description of Subject Property Operations

The three-story main building located on the southeast corner of West 3rd and Maple Streets is configured
for use as commercial office space and a retail bank branch. The customer service bank branch
operations are conducted on the first floor. The second floor includes a training center, kitchen, two
conference rooms, and a computer network room. The third floor is vacant office space with evidence of
an unfinished renovation. A basement is used for storage and facility services.
A one story remote motor bank is located directly across West 3rd Street from the main building. It has
three drive-through lanes and an adjacent asphalt parking lot for the main building customers. A walk-up
Automated Teller Machine (ATM) is located within the south wall of the motor bank building.
The main building property encompasses approximately 0.3 acres and is built of masonry. A residence
abuts the eastern exterior of the building, and residences and commercial properties abut the southern
exterior.
The motor bank is also of masonry construction and does not include a basement.
2.3.2 Building/Grounds
The Subject Property is improved with buildings (see below), concrete walkways, asphalt-paved parking
and vehicular access drives.

The following building are located on the Subject Property (Figure 2), as referenced in this report.
~Area
Building Building Utilization/Operations/Departments Construction Date(s)
(ft2)
Commercial bank branch with training center and
#1 14,000 Between 1920 to 1927
offices
#2 Motor bank 420 Between 1978 to 1980
2.3.3 Utilities
Utilities and heating supplied to the Subject Property include the following:
Utilities Provider
Electrical PP&L
Potable water use Aqua-Pennsylvania
Domestic wastewater Mount Carmel Sewer System
Waste removal On-Call
Heating
Natural gas PG Energy
Potable water supplied to the Subject Property is obtained from the following source(s): Aqua
Pennsylvania is contracted to supply water to Mount Carmel. The water is obtained from groundwater
supply wells.
Water quality of the region: According to The US Geologic Survey Circular 1168, nitrates are of a
concern in both surface water and groundwater in the Lower Susquehanna River Basin.
2.3.4 Housekeeping
Yes No Evidence of surface spills, surface staining, mold, debris piles, abandoned
products/wastes etc., was observed on the Subject Property.
Yes No Areas of distressed vegetation were identified on or bordering the Subject Property.
Yes No Abnormal odors associated with the Subject Property were identified.
Evidence of recent site disturbances (e.g., excavation, filling, tilling, grading, etc.)
Yes No
was observed on or bordering the Subject Property.
Comments regarding housekeeping: A wood-slatted barrel was found in a room in the western portion of
the basement, containing greenish-white crystalline particles of approximately 1-inch irregular shapes
(possibly salt for water conditioning). The barrel was open and the northern side of the barrel was rotted
through. A whitish residue was on the floor around the barrel, suggesting the particles dissolve in water.
Near the center of the basement, a 20 to 30 gallon steel container was found labeled “metal polish”. The
container had no further information observed and appeared to be full. The container was somewhat
rusty, however no leaks were observed.
A steel device, approximately 8-inches by 10-inches by 6-inches was on the floor near the container
labeled metal polish. The device appeared to be an electrical component of an unknown piece of

machinery or equipment, possibly a transformer or a capacitor. No markings were found on the device
and it did not appear to be leaking.
2.3.5 Chemical Materials and Petroleum Products Storage and Use

Yes No Various retail-sized products and virgin materials are stored on the Subject Property
for maintenance purposes. Cleaning supplies are located in the basement of the main
bank building.
Yes No Chemicals, hazardous materials or petroleum products are stored in bulk (>5 gallons)
on the Subject Property.
Yes No Excluding heating systems, petroleum products are used for the operation of
equipment (e.g., air compressors, emergency generators, elevators etc.) on the Subject
Property. Petroleum products are confined to the equipment.
Comments regarding chemical materials and petroleum products storage and use: A wood-slatted barrel
was found in a room in the western portion of the basement, containing greenish-white crystalline
particles of approximately 1-inch irregular shapes. The barrel was open and the northern side of the
barrel was rotted through. A whitish residue was on the floor around the barrel, suggesting the particles
dissolve.
Near the center of the basement, a 20 to 30 gallon steel container was found labeled “metal polish”. The
container had no further information observed and appeared to be full. The container was somewhat
rusty, however no leaks were observed.
An elevator that utilizes hydraulic oil and pump system is located in the basement. No evidence of
hydraulic oil leakage from the pump or above grade piping was observed.
Additional information regarding bulk storage of chemicals, hazardous materials or petroleum products is
located in Section 2.3.7 – Aboveground Storage Tanks and Section 2.3.8 – Underground Storage Tanks.
2.3.6 Waste Generation, Storage, and Disposal

Yes No Non-hazardous wastes such as paper and cardboard are generated at the Subject
Property.
Yes No Hazardous wastes are generated at the Subject Property.
Yes No Empty drums or other suspect containers were observed.
Yes No Evidence of existing or former, waste lagoons, injection wells, or similar waste
disposal practices were observed during the site inspection.
Comments regarding waste generation, storage, and disposal: Generated non-hazardous wastes are placed
in a locked dumpster located in the parking lot of the motor bank and regularly picked up by On-Call.

2.3.7 Aboveground Storage Tanks

Yes No Aboveground Storage Tanks (ASTs) are located on the Subject Property (ASTs are
considered >55 gallons in capacity).
2.3.8 Underground Storage Tanks

Underground Storage Tanks (USTs) are/were formerly located on the Subject
Yes No
Property, as reported by regulatory agencies or facility personnel.
Physical evidence indicative of current or former USTs was observed on the Subject
Yes No
Property by ENTRIX.
2.3.9 Wells
The following well types are located/formerly located on the Subject Property:
accessible monitor well(s) plugged monitor well(s)
accessible water supply well(s) plugged water supply well(s)
accessible UST leak detection well(s) plugged UST leak detection well(s)
dry well(s) irrigation well(s)
injection well(s) abandoned well(s)
none reported/observed other:
In relation to the Subject Property, The nearest public water supply well is located between ½ and one
mile south-southwest of the subject property. (Data regarding wells was provided by Environmental Data
Resources, Inc. [EDR]).
2.3.10 Wastewater Management
Yes No Wastewater (sinks, lavatories) is generated at the Subject Property.
The following number of devices were identified or reported to be located on the Subject Property for the
collection of domestic wastewater:
floor drain(s): location(s):
sump(s): location(s):
other: location(s):
none
Wastewater is discharged to:
unknown/undetermined municipal sanitary sewer ground surface
oxidation pond septic tank/leach field other:
Information regarding the wastewater system was identified according to:
report by facility personnel site plans/drawings municipal records/permit
results from tracer testing other:

2.3.11 Stormwater Management

Stormwater flow at the Subject Property is controlled by the following:
parking lot drain drainage ditch on-site retention pond
curb inlets ground surface discharge other:
Comments or issues regarding stormwater management: Roof drains and storm water runoff is carried via
the Borough’s storm water sewer system.
2.3.12 Potential Asbestos-Containing Materials

In accordance with regulations adopted by the Federal Occupational Safety and Health Administration
(OSHA), surfacing material (including sprayed material and troweled on acoustical plaster, fireproofing,
etc.), thermal system insulation, and flooring materials (vinyl and asphalt) used in buildings constructed
no later than 1980 are presumed to contain potential asbestos-containing materials (ACMs), unless testing
proves otherwise. After 1980, the aforementioned materials are not presumed to be ACMs. However,
certain types of products including, but not limited to, acoustical ceiling tile, vinyl floor tile, and drywall
could potentially still contain ACMs.
A visual inspection of accessible building materials was conducted by ENTRIX in an effort to identify
materials suspected of containing asbestos. The visual inspection did not include roofing materials or
inaccessible spaces within the site building. Determination of whether Subject Property buildings contain
asbestos can only be ascertained by performing an asbestos survey.
Site buildings were constructed prior to 1980, and therefore, ACMs may have been
Yes No
used.
Potential ACMs were visually identified at the Subject Property for buildings
Yes No
constructed prior to 1980.
Applicable details regarding potential ACMs are provided below:
Location of potential ACMs: Each floor and the basement of the main bank building and the motor
bank building.
Potential ACMs include the following:
vinyl tile floor/mastic acoustical ceiling tile pipe/duct insulation
spray-on insulation plaster materials/drywall other:
Comments or issues regarding potential ACMs: According to the property manager, the first and second
floors of the building underwent a significant renovation approximately 15-years ago. No reports of
ACM surveys or removals were provided.
2.3.13 Potential Polychlorinated Biphenyl-Containing Equipment

Potential polychlorinated biphenyl-containing equipment (PCBs) were used as a coolant or in lubricating
oils that were widely used as dielectric and heat transfer fluids in transformers prior to 1976. Electrical
equipment often contains oil that acts as the dielectric fluid.
The federal government has classified PCB content in electrical transformers as follows:
x Non-PCB transformers are those containing less than 50 parts per million (ppm) PCBs;

x PCB-contaminated transformers are those containing greater than 50, but less than 500 ppm
PCBs; and
x PCB transformers are those containing 500 ppm or greater PCBs.
Applicable details regarding potential PCBs are provided below:
Potential PCB-containing equipment includes the following:

none electrical transformer(s) fluorescent light ballast(s)
hydraulic elevators(s) electrical capacitor(s) other:
Comments or issues regarding PCB-content of equipment (if no PCB-content labeling): Products used are
confined to the equipment. PCB content of equipment cannot be determined without testing the fluids
within each piece of equipment. All equipment should be assumed to be PCB-containing unless
otherwise labeled. Fluorescent lights are in use throughout the Subject Property. The light ballast(s)
appeared to be in good condition during the site inspection; however, not all light ballast(s) were
individually inspected.
A steel device, approximately 8-inches by 10-inches by 6-inches was on the floor near the container
labeled metal polish. The device appeared to be an electrical component of an unknown piece of
machinery or equipment, possibly a transformer or a capacitor. No markings were found on the device
and it did not appear to be leaking.
An elevator that utilizes hydraulic oil and pump system is located in the basement. No evidence of
hydraulic oil leakage from the pump or above grade piping was observed.
Applicable photographs: Appendix A, Photograph(s) #13 and #15.
2.3.14 Radon
Radon is a colorless, odorless, tasteless, radioactive gas that results from the decay of Radium-226.
Radium occurs naturally in small quantities in most rocks and soil, radon is continuously released into
soil, underground water, and outdoor air. Radon is chemically inert and moves freely without combining
with other materials. In indoor air, radon emitted from soil is quickly diluted to very low concentrations.
Relatively high concentrations of radon can accumulate inside buildings where radon-containing soil gas
infiltrates buildings through openings such as cracks, joints and utility penetrations. As a comparison,
average outdoor radon concentrations tend to range from approximately 0.1 to 0.2 pico-Curies per liter
(pCi/L).
According to the EDR report, the Subject Property is located in Federal EPA Zone:
Zone 1 indoor average level > 4 pCi/L.
Zone 2 indoor average level >=2 pCi/L and <=4 pCi/L.
Zone 3 indoor average level <2 pCi/L.
Comments regarding radon: Radon levels specific to the Subject Property can only be determined through
radon sampling and testing.

2.3.15 Mold
Mold is commonly found in homes or buildings, which have sustained flooding or water damage from
broken pipes, roof leaks sewage backups, HVAC condensation, etc. Mold is most common on the paper
covering of drywall and wallpaper, ceiling tiles, paper, products, carpets with natural fibers, paper
coverings on insulated pipes, insulation material on wood, food and on general organic debris. Potential
health effects and symptoms associated with mold exposures include allergic reactions, asthma and other
respiratory complaints.
A visual inspection of accessible building materials was conducted by ENTRIX in an effort to identify
areas of potential mold. The visual inspection did not include inaccessible spaces within the site building.
Determination of whether Subject Property buildings contain mold can only be ascertained by performing
a mold spore sampling survey.
Yes No Area of potential mold was identified during the site inspection.
Yes No Water damage or potential mold was reported by facility personnel.
2.3.16 Other Features/Conditions

The other features/conditions are located on the Subject Property that were either observed or reported:
air compressor(s) alternate power source (generator, batteries, etc.)
elevator(s) other
trash compactor(s) other
Comments regarding other features/conditions at the Subject Property: An elevator that utilizes hydraulic
oil and pump system is located in the basement. No evidence of hydraulic oil leakage from the pump or
above grade piping was observed. The elevator shaft was inaccessible. According to facility personnel,
the elevator functions properly. Some elevator components are situated below ground. Impacts to the
subsurface, if any, are unknown.
Additional information regarding bulk storage of chemicals, hazardous materials or petroleum products is
located in Section 2.3.7 – Aboveground Storage Tanks and Section 2.3.8 – Underground Storage Tanks.
Applicable photographs: Appendix A, Photograph(s) #15.

3.0 REGULATORY AGENCY RECORDS REVIEW
3.1 REGULATORY AGENCY DATABASE INFORMATION
As part of this assessment, ENTRIX obtained and reviewed State and Federal regulatory agency database
listings concerning the current and historical activities conducted at the Subject Property and immediate
surrounding area. The regulatory database information, provided by EDR, complies with the ASTM
Standard E 1527-00 for government records review. Database information and corresponding search
distances from the Subject Property are included in Table 3-1. The database report is included as
Appendix B.
Yes No The Subject Property is listed in one or more of the regulatory agency databases
researched. (Details regarding any regulatory agency database listings are provided
below).
Yes No Database listings conflict with site observations and/or other reported information
regarding the Subject Property.
Yes No Excluding the Subject Property, sites in the vicinity of the Subject Property are
listed in one or more of the regulatory agency databases researched. Details
regarding any database listings are provided below. A summary of these regulatory
agency database sites is presented as Table 3-2.
Regulatory agency database listings for sites located within the specified search radii (see Table 3-1)
include the following:
NPL CERCLIS FINDS ERNS
SPL RCRIS SWF/LF SHWS
UST LUST CORRACTS other:
Comments regarding off-site properties listed in regulatory agency databases: Two Resource
Conservation and Recovery Information System (RCRIS) sites are located between zero and ¼ mile from
the Subject Property. The EDR reports that K’s Cleaners, located at 10 North Oak Street, less than ǩ of a
mile north of the Subject Property, received two violations in September 1999. Compliance was achieved
for both violations in December of that year. The other RCRIS site, Keystone Printing and Graphics, has
no violations listed.
Three properties are listed in the UST database within ¼ mile of the Subject Property. One of the
properties listed in the UST database is also listed in the LUST database. Refer below for LUST
information.
Two properties are listed in the LUST database within ½ mile of the Subject Property. According to the
EDR, the Mount Carmel Borough Garage, located less than ǩ mile south-southeast of the property, had a
petroleum UST that experienced a release in 1989. The EDR gives the site status as “cleanup completed”
as of April 22, 1992. The Miriello Service Station, located between ¼ and ½ mile east-northeast of the
property, experienced a release from a petroleum UST in 1989. The EDR lists the status as “cleanup
completed” as of October 30, 1997. Based on the information in the EDR and distance from the Subject
Property, these LUST sites are not expected to pose a recognized environmental condition for the Subject
Property. Impacts to the Subject Property, if any, are unknown.

Nineteen orphan sites, which could not be mapped due to poor or inadequate address information, are
included in the database report provided by EDR. None of the orphan sites were observed to be in the
vicinity of the Subject Property during the site inspection.
Table 3-1. Summary of Researched Databases
Agency
Issuing Search
Database Version Description
Agency Radius
Date
List of uncontrolled or abandoned
National Priority List hazardous waste sites identified for
U.S. EPA 4/27/04 1 mile
(NPL) priority remedial actions under the
federal Superfund program.
List of suspected uncontrolled waste
sites (i.e., actual or potential Superfund
sites, inactive, bankrupt, or abandoned
Comprehensive hazardous waste sites, roadside dumps,
Environmental or sites that have been the Subject of
Recovery, citizen complaints) that may contain
U.S. EPA 2/26/04 ½ mile
Compensation and hazardous waste or other toxic or
Liability Information regulated materials. The inclusion of a
System (CERCLIS) site on the CERCLIS list does not
confirm that illegal activity has taken
place, or that a health or environmental
risk exists at the site.
List of sites that have been removed
from CERCLIS. These sites may be
sites where initial investigation found
CERCLIS-No Further no contamination, contamination was
1 mile or
Remedial Action U.S. EPA 2/26/04 quickly removed without the need for
adjacent
Planned (NFRAP) the site to be placed on the NPL, or the
contamination was not serious enough
to require Federal Superfund action or
NPL consideration.
List of facilities that generate, treat,
Resource Conservation store, or dispose of hazardous wastes.
and Recovery The inclusion of a site on the RCRA
U.S. EPA 4/13/04 ¼ mile
Information System list indicates that the facility has
(RCRIS) notified the EPA that it manages RCRA
hazardous waste.
List of releases of oil and hazardous
Emergency Response substances since October 1986 reported
Subject
Notification System U.S. EPA 12/31/03 to the EPA, U.S. Coast Guard, National
Property
(ERNS) Response Center, or Department of
Transportation.
Resource Conservation
List of RCRA facilities undergoing a
and Recovery Act
U.S. EPA 3/15/04 1 mile corrective action order where a release
(RCRA) Corrective
of hazardous waste has occurred.
Actions (CORRACTS)

Table 3-1. Summary of Researched Databases (continued)

Agency
Issuing Search
Database Version Description
Agency Radius
Date
Solid Waste Facility
Inventory of solid waste facilities
Information/Landfill PADEP 7/21/03 ½ mile
permitted by the State.
(SWF/LF)
Underground Storage Inventory of registered UST and AST
PADEP 4/1/04 ¼ mile
Tank (UST) sites.
Leaking Inventory of leaking registered
Underground Storage PADEP 4/6/04 ½ mile underground storage tank sites reported
Tank (LUST) to the State.
State Hazardous Inventory of sites on the State
PADEP 7/8/03 1 mile
Waste Site (SHWS) Superfund list.
Table 3-2. Regulatory Agency Database Sites Within ¼ Mile of the Subject Property
Agency Distance Regulatory
Facility Name and Address Direction*
Database(s) (miles)* Status
K’s Cleaners
RCRIS <ǩ East-Northeast R2, R5
10 North Oak Street
Keystone Printing and Graphics
RCRIS ǩ to ¼ North R2
483 North Oak Street
Mount Carmel Borough Garage
LUST, UST <ǩ South-Southeast L2, U1
121 South Oak Street
Miriello Service Station
LUST ¼ to ½ East-Northeast L2
550 East 3rd Street
Ray’s Gulf
UST <ǩ North-Northeast U1
150 North Oak Street
Tower Mini-Mart (Texaco)
UST <ǩ West U1
Third and Maple Streets
Turkey Hill 133
UST ǩ to ¼ Southeast U1
130 East 5th
*Distance/Direction from Subject Property.
Notations Regarding Status of Regulatory Agency Database Sites
C1 - CERCLA Violation/Citation N2 - Delisted NPL Site

C2 - Active CERCLA Site O1 - Other
C3 - Closed CERCLA Site R1 - RCRA Conditionally Exempt Generator
CO1 - Active CORRACTS Site R2 - RCRA Small-Quantity Generator
CO2 - Closed CORRACTS Site R3 - RCRA Large-Quantity Generator
E1 - Confirmed ERNS Site R4 - RCRA TSD Facility
E2 - Unconfirmed ERNS Site R5 - RCRA Violation/Citation
H1 - Listed Hazardous Waste Site (HWS) S1 - Solid Waste Landfill

H2 - Delisted Hazardous Waste Site (HWS) T1 - TRIS Facility

L1 - Active LUST Site U1 - Active UST(s)
L2 - Closed LUST Site U2 - Out-of-Service/Removed UST(s)
L3 - Status of LUST Site Unknown/Not Reported U3 - Abandoned-in-Place UST(s)
N1 - Listed NPL Site U4 - Status of UST Unknown/Not Reported
3.2 REGULATORY AGENCY CONTACT INFORMATION
Regulatory agency personnel were contacted regarding potential reports, investigations, citations, permits,
or corrective actions associated with the Subject Property and/or sites in the vicinity of the Subject
Property. Information reported by agency personnel is presented below:
Agency contacted: Pennsylvania Department of Environmental Protection

Name of agency representative(s): Mr. Randy Farmer
Date of agency contact: June 21, 2004 Agency phone number: (570) 327-3716
Response from agency:
no file(s) identified file(s) identified
file(s) regarding issue not maintained by Agency other:
Comments regarding regulatory agency inquiry: Mr. Farmer had no knowledge of environmental
problems at the site, and suggested speaking with the file coordinator in Harrisburg (PADEP
Headquarters).
Agency contacted: Pennsylvania Department of Environmental Protection

Name of agency representative(s): Ms. Jacqueline Travay
Comments regarding regulatory agency inquiry: Ms. Travay searched the state file database, finding
no files concerning the site.
Agency contacted: Borough of Mount Carmel

Name of agency representative(s): Mr. Joe Bass
Comments regarding regulatory agency inquiry: Mr. Bass is the Borough Manager. He is very
familiar with the site and area, and said that there has never been a report of an environmental issue
there.

4.0 HISTORICAL LAND USE
In association with the site inspection, an investigation was conducted to identify past land uses of the
Subject Property and neighboring properties.
The following sources of historical information were reviewed by ENTRIX:
aerial photographs site plans/permits previous reports
fire insurance maps city directories property record card
personnel interviews topographic maps other:
Historical information indicates that the site of the main bank building was developed prior to 1920 as
shops that included a grocers, a meat shop, and at one point, a cobblers. The building currently located
on the Subject Property was constructed in between 1913 and 1920 according to the fire insurance maps.
The 1920 fire insurance map depicts a 100-foot building, while the 1913 map shows the land as vacant.
The property on which the motor bank is located appears to be a grocers until 1927, when the Victoria
Theater appears on the map. The theatre remained until at least 1962.
The Northumberland Tax Assessor was contacted to obtain the property records card for the subject
properties. Despite repeated searches, the county was unable to locate either property record card.
Yes No Historical information regarding the Subject Property prior to property development
was obtained.
Yes No Historical land use information indicates that potential environmental issues exist for
Subject Property and/or immediate vicinity.
Comments regarding potential environmental issues identified from historical information: No property
uses depicted on the Sanborn fire insurance maps for, or in the immediate vicinity of, the Subject Property
would be expected to cause environmental issues.
A chronological summary of historical land use is presented in Table 4-1. Historical information is
included in Appendix C.
Table 4-1. Historical Land Use Summary
Date Source of Historical
Description of Historical Land Use
(Year) Information
The maps depict a grocers at the site of the current motor
Sanborn Fire Insurance bank. Several small buildings of unknown use are depicted
1885
Maps at the site of the main bank building. The surrounding area
appears to be mainly commercial and residential.
1891
1896
The map depicts a meat market and a grocers at the site of
Sanborn Fire Insurance
1901 the main bank building, and a grocers and a domicile at the
Maps
site of the motor bank.

Table 4-1. Historical Land Use Summary

Date Source of Historical
Description of Historical Land Use
(Year) Information
The map depicts a grocers, a meat shop, a cobbler, and one
Sanborn Fire Insurance domicile at the current site of the main bank building. A
1907
Maps grocers and a domicile are shown at the current motor bank
location.
The current site of the main bank building is shown vacant
1913 on this map, and the motor bank location is depicted with a
Maps
grocers and a domicile.
The current main bank building location is depicted with a
Sanborn Fire Insurance 100-foot building of the same configuration as the existing
1920
Maps building. The motor bank location is depicted as a grocers
and a domicile.
The site of the main bank building is labeled “Liberty State
Bank and Trust”. It appears that the land use has not
1927-1962 changed since the building was constructed. The site of the
Maps
motor bank has had a theatre constructed on it, labeled
“Victoria Theatre”.

5.0 SUMMARY OF RECOGNIZED ENVIRONMENTAL CONDITIONS
ENTRIX was retained by American Financial Realty Trust to conduct a Phase I ESA of the commercial
property located at 50 and 51 West 3rd Street in the Borough of Mount Carmel, Pennsylvania. The
Subject Property was inspected by ENTRIX staff on May 27, 2004, in an effort to identify potential
environmental issues that may exist due to current and past activities conducted on or near the Subject
Property. In association with the site inspection, the assessment included regulatory agency records
review and inquiry, and related historical research.
Based on the investigation, the following environmental issues were identified:
5.1 SUBJECT PROPERTY

The buildings located on the Subject Property were constructed prior to 1980 and, therefore, ACMs may
have been used during the building construction.
Recommendation:
An asbestos survey should be considered to determine if ACMs are present. If identified through
sampling and analysis, the ACMs should be abated and/or managed.

The Subject Property is located in an area of high radon.
Recommendation:
Radon testing should be conducted (at a minimum) to verify whether high levels of radon exist. If high
levels of radon are discovered, the installation of a radon mitigation system should be considered.
5.2 NEIGHBORING PROPERTIES

No recognized environmental conditions were identified in conjunction with neighboring properties.
Recommendation:
No recommendation.

6.0 SUMMARY OF REFERENCES
ENTRIX requested and/or obtained readily available environmental/real estate reports and other relevant
sources of information during the preparation of this report. This section provides a summary of the
references reviewed. Note that this summary does not identify environmental/real estate reports and other
relevant sources of information that were not provided, were not readily available, or did not exist.
Subject Property Representatives

Mr. Mike Boyko - Slater & Sons, Inc.
Regulatory Agency Representatives

Ms. Jacqueline Travay - Pennsylvania Department of Environmental Protection
Mr. Joe Bass - Borough of Mount Carmel
Mr. Randy Farmer - Pennsylvania Department of Environmental Protection
Topographic Maps
1894, 1947, 1955, and 1976-via Environmental Data Resources, Inc.
Fire Insurance Maps

1885, 1891, 1896, 1901, 1907, 1913, 1920, 1927, 1947 and 1962 - Source: The Sanborn Library LLC
(via Environmental Data Resources, Inc.).
Other Reports
Environmental Data Resources, Inc., May 25, 2004. EDR Radius Map with Geocheck.
Keating Environmental Management, Inc., March 1998. Phase I Environmental Site Assessment for 50
West Third Street, Borough of Mount Carmel.
Published Information
US Geological Survey Circular 1168: Water Quality in the Lower Susquehanna River Basin in
Pennsylvania and Maryland; 1998, US Geological Survey.
FIGURES
Subject Property
Scale: 1:24,000 Figure 1

Contour Interval = 5 Feet Site Location Map
USGS 7.5 Minute Quadrangles: Mount Carmel
Mount Carmel, Pennsylvania (1974) 50 West 3rd Street
Mount Carmel, Pennsylvania
Project No. 7070930 Jun-04
Figure 2
Site Vicinity and Layout Map
Mount Carmel
50 West 3rd Street
PROJ. NO: 7070930 D/B: SRS DATE: 6/04
Appendix A
Site Photographs
Mount Carmel
Photograph #1. Texaco Station on southwest corner of Maple and Photograph #2. Bank building on right, adjacent residence on left,
West 3rd Streets. looking south.
Photograph #3. Looking across West 3rd Street from Main bank Photograph #4. Looking east from motor bank to
building north toward motor bank. residential/commercial properties.
Mount Carmel
Photograph #5. Looking west from motor bank toward residential Photograph #6. West Side of main bank building.
properties on northwest corner of Maple Street and West 3rd Street.
Photograph #7. Interior of motor bank. Photograph #8. Exterior of motor bank.
Mount Carmel
Photograph #9. Lobby of main bank building. Photograph #10. Southeast corner of main bank building in
background.
Photograph #11. Wood-slatted barrel with unknown substance in Photograph #12. Full steel container labeled “Metal Polish” in
basement. basement.
Mount Carmel
Photograph #13. Unknown electrical device in basement. Photograph #14. Cleaning material storage in basement.
Photograph #15. Hydraulic elevator reservoir.

APPENDIX B
Environmental Data Resources Report
The EDR Radius Map
with GeoCheck®
Mount Carmel Wachovia Bank

50 West 3rd Street
Mount Carmel, PA 17851
Inquiry Number: 01199464.29r

The Standard in
Environmental Risk
Management Information
440 Wheelers Farms Road

May 25, 2004 Milford, Connecticut 06460
Nationwide Customer Service
Telephone: 1-800-352-0050
Fax: 1-800-231-6802
Internet: www.edrnet.com
FORM-WIS
TABLE OF CONTENTS
SECTION PAGE
Executive Summary ES1

Overview Map 2
Detail Map 3
Map Findings Summary 4
Map Findings 6
Orphan Summary 14
Government Records Searched/Data Currency Tracking GR-1
GEOCHECK ADDENDUM
Physical Setting Source Addendum A-1

Physical Setting Source Summary A-2
Physical Setting Source Map A-7
Physical Setting Source Map Findings A-8
Physical Setting Source Records Searched A-13
Thank you for your business.

Please contact EDR at 1-800-352-0050
with any questions or comments.
Disclaimer - Copyright and Trademark Notice
This report contains information obtained from a variety of public and other sources. NO WARRANTY EXPRESSED OR IMPLIED, IS MADE
WHATSOEVER IN CONNECTION WITH THIS REPORT. ENVIRONMENTAL DATA RESOURCES, INC. SPECIFICALLY DISCLAIMS THE MAKING OF ANY
SUCH WARRANTIES, INCLUDING WITHOUT LIMITATION, MERCHANTABILITY OR FITNESS FOR A PARTICULAR USE OR PURPOSE. ALL RISK IS
ASSUMED BY THE USER. IN NO EVENT SHALL EDR BE LIABLE TO ANYONE, WHETHER ARISING OUT OF ERRORS OR OMISSIONS, NEGLIGENCE,
ACCIDENT OR ANY OTHER CAUSE, FOR ANY LOSS OR DAMAGE, INCLUDING, WITHOUT LIMITATION, SPECIAL, INCIDENTAL, CONSEQUENTIAL, OR
EXEMPLARY DAMAGES. It can not be concluded from this report that coverage information for the target and surrounding properties does not
exist from other sources. Any analyses, estimates, ratings or risk codes provided in this report are provided for illustrative purposes only, and are
not intended to provide, nor should they be interpreted as providing any facts regarding, or prediction or forecast of, any environmental risk for
any property. Any liability on the part of EDR is strictly limited to a refund of the amount paid for this report.
Copyright 2004 by Environmental Data Resources, Inc. All rights reserved. Reproduction in any media or format, in whole
or in part, of any report or map of Environmental Data Resources, Inc., or its affiliates, is prohibited without prior written permission.
EDR and its logos (including Sanborn and Sanborn Map) are trademarks of Environmental Data Resources, Inc. or its affiliates. All other
trademarks used herein are the property of their respective owners.
TC01199464.29r Page 1
EXECUTIVE SUMMARY
A search of available environmental records was conducted by Environmental Data Resources, Inc.
(EDR). The report meets the government records search requirements of ASTM Standard Practice for
Environmental Site Assessments, E 1527-00. Search distances are per ASTM standard or custom
distances requested by the user.
TARGET PROPERTY INFORMATION
ADDRESS
50 WEST 3RD STREET

MOUNT CARMEL, PA 17851
COORDINATES
Latitude (North): 40.796700 - 40˚ 47’ 48.1’’

Longitude (West): 76.414100 - 76˚ 24’ 50.8’’
Universal Tranverse Mercator: Zone 18
UTM X (Meters): 380702.4
UTM Y (Meters): 4516939.5
Elevation: 1087 ft. above sea level
USGS TOPOGRAPHIC MAP ASSOCIATED WITH TARGET PROPERTY
Target Property: 40076-G4 MOUNT CARMEL, PA

Source: USGS 7.5 min quad index
TARGET PROPERTY SEARCH RESULTS
The target property was not listed in any of the databases searched by EDR.
DATABASES WITH NO MAPPED SITES

No mapped sites were found in EDR’s search of available ( "reasonably ascertainable ") government
records either on the target property or within the ASTM E 1527-00 search radius around the target
property for the following databases:
FEDERAL ASTM STANDARD

NPL National Priority List
Proposed NPL Proposed National Priority List Sites
CERCLIS Comprehensive Environmental Response, Compensation, and Liability Information
System
CERC-NFRAP CERCLIS No Further Remedial Action Planned
CORRACTS Corrective Action Report
RCRIS-TSD Resource Conservation and Recovery Information System
RCRIS-LQG Resource Conservation and Recovery Information System
ERNS Emergency Response Notification System
STATE ASTM STANDARD

SHWS Hazardous Sites Cleanup Act Site List
TC01199464.29r EXECUTIVE SUMMARY 1

EXECUTIVE SUMMARY
SWF/LF Solid Waste Facility Inventory/Transfer Stations

VCP Voluntary Cleanup Program Sites
ARCHIVE UST Archived Underground Storage Tank Sites
FEDERAL ASTM SUPPLEMENTAL

CONSENT Superfund (CERCLA) Consent Decrees
ROD Records Of Decision
Delisted NPL National Priority List Deletions
FINDS Facility Index System/Facility Identification Initiative Program Summary Report
HMIRS Hazardous Materials Information Reporting System
MLTS Material Licensing Tracking System
MINES Mines Master Index File
NPL Liens Federal Superfund Liens
PADS PCB Activity Database System
INDIAN RESERV Indian Reservations
FUDS Formerly Used Defense Sites
US BROWNFIELDS A Listing of Brownfields Sites
DOD Department of Defense Sites
RAATS RCRA Administrative Action Tracking System
TRIS Toxic Chemical Release Inventory System
TSCA Toxic Substances Control Act
SSTS Section 7 Tracking Systems
FTTS INSP FIFRA/ TSCA Tracking System - FIFRA (Federal Insecticide, Fungicide, &
Rodenticide Act)/TSCA (Toxic Substances Control Act)
STATE OR LOCAL ASTM SUPPLEMENTAL

AST Listing of Pennsylvania Regulated Aboveground Storage Tanks
LAST Storage Tank Release Sites
ACT 2-DEED Act 2-Deed Acknowledgment Sites
HIST LF Abandoned Landfill Inventory
ARCHIVE AST Archived Aboveground Storage Tank Sites
UNREG LTANKS Unregulated Tank Cases
EDR PROPRIETARY HISTORICAL DATABASES

Coal Gas Former Manufactured Gas (Coal Gas) Sites
BROWNFIELDS DATABASES
US BROWNFIELDS A Listing of Brownfields Sites
AUL Engineering and Institutional Controls at Act 2 Sites
VCP Voluntary Cleanup Program Sites
BROWNFIELDS Brownfields Sites
SURROUNDING SITES: SEARCH RESULTS

Surrounding sites were identified.
Elevations have been determined from the USGS Digital Elevation Model and should be evaluated on
a relative (not an absolute) basis. Relative elevation information between sites of close proximity
should be field verified. Sites with an elevation equal to or higher than the target property have been
differentiated below from sites with an elevation lower than the target property.
Page numbers and map identification numbers refer to the EDR Radius Map report where detailed
data on individual sites can be reviewed.
Sites listed in bold italics are in multiple databases.
Unmappable (orphan) sites are not considered in the foregoing analysis.

EXECUTIVE SUMMARY

RCRIS: Resource Conservation and Recovery Information System. RCRIS includes
selective information on sites which generate, transport, store, treat and/or
dispose of hazardous waste as defined by the Resource Conservation and Recovery
Act (RCRA). Conditionally exempt small quantity generators (CESQGs): generate
less than 100 kg of hazardous waste, or less than 1 kg of acutely hazardous
waste per month. Small quantity generators (SQGs): generate between 100 kg
and 1,000 kg of hazardous waste per month. Large quantity generators (LQGs):
generate over 1,000 kilograms (kg) of hazardous waste, or over 1 kg of acutely
hazardous waste from the generator off-site to a facility that can recycle,
treat, store, or dispose of the waste. TSDFs treat, store, or dispose of
the waste.
A review of the RCRIS-SQG list, as provided by EDR, and dated 04/13/2004 has revealed that there are
2 RCRIS-SQG sites within approximately 0.25 miles of the target property.
Equal/Higher Elevation
____________________ Address
________ Dist / Dir
__________ Map ID
_____ Page
_____
K’S CLNRS 10 N OAK ST 0 - 1/8 ENE 2 8
Lower Elevation
____________________ Address
________ Dist / Dir
__________ Map ID
_____ Page
_____
KEYSTONE PRINTING AND GRAPHIC 483 N OAK ST 1/8 - 1/4 N 6 12
STATE ASTM STANDARD

LUST: The Leaking Underground Storage Tank Incident Reports contain an inventory of reported
leaking underground storage tank incidents. The data come from the Department of Environmental
Resources’ List of Confirmed Releases.
A review of the LUST list, as provided by EDR, and dated 04/06/2004 has revealed that there are 2
LUST sites within approximately 0.5 miles of the target property.
Lower Elevation
____________________ Address
________ Dist / Dir
__________ Map ID
_____ Page
_____
MT CARMEL BORO NORTHUMBERLAND 121 S OAK ST 0 - 1/8 SSE 4 10
MIRIELLO SVC STA 550 E 3RD ST 1/4 - 1/2 ENE 7 13
UST: The Underground Storage Tank database contains registered USTs. USTs are regulated under
Subtitle I of the Resource Conservation and Recovery Act (RCRA). The data come from the
Department of Environmental Resources’ Regulated Underground Storage Tank Listing.
A review of the UST list, as provided by EDR, and dated 04/01/2004 has revealed that there are 4 UST
sites within approximately 0.25 miles of the target property.
Equal/Higher Elevation
____________________ Address
________ Dist / Dir
__________ Map ID
_____ Page
_____
RAYS GULF 150 N OAK ST 0 - 1/8 NNE 3 8
TURKEY HILL 133 130 E 5TH ST 1/8 - 1/4 SE 5 11
Lower Elevation
____________________ Address
________ Dist / Dir
__________ Map ID
_____ Page
_____
TOWER MINI MKT THIRD & MAPLE ST 0 - 1/8 W 1 6

EXECUTIVE SUMMARY
Lower Elevation
____________________ Address
________ Dist / Dir
__________ Map ID
_____ Page
_____
MT CARMEL BORO NORTHUMBERLAND 121 S OAK ST 0 - 1/8 SSE 4 10

EXECUTIVE SUMMARY
Due to poor or inadequate address information, the following sites were not mapped:
Site Name
____________ Database(s)
____________
MOUNT CARMEL SCHOOL DISTRICT FTTS INSP
MOUNT CARMEL TOWNSHIP LANDFILL- NATALIE CERC-NFRAP
MT. CARMEL GAS PLANT CERC-NFRAP
MOUNT CARMEL BOROUGH LANFILL - ATLAS CERC-NFRAP
PPL POLE SITE NO 158 VCP
BLOOMSBURG MUN AUTH (J.L. MCDOWEL) SWF/LF
KUZO BROTHERS RCRIS-SQG, FINDS, LUST
CAPITAL PETRO LUST
SUNOCO 0003 2037 LUST
UNI MART 44130 UST
TADDEO BODY WORKS RCRIS-SQG, FINDS
BULLSEYE FORD INC RCRIS-SQG, FINDS
NORTHEAST INDUSTRIAL SERV CORP RCRIS-SQG, FINDS
MOUNT CARMEL PLANT FINDS
MOUNT CARMEL BORO AUTH FINDS
ALUMO PROD CO/MT CARMEL PLT FINDS
MOUNT CARMEL GREENHOUSE FINDS
MT CARMEL FLYASH FAC FINDS
MOUNT CARMEL GAS LIGHT CO. Coal Gas

MAP FINDINGS SUMMARY
Search
Target Distance Total
Database Property (Miles) < 1/8 1/8 - 1/4 1/4 - 1/2 1/2 - 1 >1 Plotted
NPL 1.000 0 0 0 0 NR 0
Proposed NPL 1.000 0 0 0 0 NR 0
CERCLIS 0.500 0 0 0 NR NR 0
CERC-NFRAP 0.250 0 0 NR NR NR 0
CORRACTS 1.000 0 0 0 0 NR 0
RCRIS-TSD 0.500 0 0 0 NR NR 0
RCRIS Lg. Quan. Gen. 0.250 0 0 NR NR NR 0
RCRIS Sm. Quan. Gen. 0.250 1 1 NR NR NR 2
ERNS TP NR NR NR NR NR 0
STATE ASTM STANDARD
State Haz. Waste 1.000 0 0 0 0 NR 0

State Landfill 0.500 0 0 0 NR NR 0
LUST 0.500 1 0 1 NR NR 2
UST 0.250 3 1 NR NR NR 4
VCP 0.500 0 0 0 NR NR 0
ARCHIVE UST 0.250 0 0 NR NR NR 0
FEDERAL ASTM SUPPLEMENTAL
CONSENT 1.000 0 0 0 0 NR 0
ROD 1.000 0 0 0 0 NR 0
Delisted NPL 1.000 0 0 0 0 NR 0
FINDS TP NR NR NR NR NR 0
HMIRS TP NR NR NR NR NR 0
MLTS TP NR NR NR NR NR 0
MINES 0.250 0 0 NR NR NR 0
NPL Liens TP NR NR NR NR NR 0
PADS TP NR NR NR NR NR 0
INDIAN RESERV 1.000 0 0 0 0 NR 0
FUDS 1.000 0 0 0 0 NR 0
US BROWNFIELDS 0.500 0 0 0 NR NR 0
DOD 1.000 0 0 0 0 NR 0
RAATS TP NR NR NR NR NR 0
TRIS TP NR NR NR NR NR 0
TSCA TP NR NR NR NR NR 0
SSTS TP NR NR NR NR NR 0
FTTS TP NR NR NR NR NR 0
STATE OR LOCAL ASTM SUPPLEMENTAL
AST TP NR NR NR NR NR 0
LAST TP NR NR NR NR NR 0
ACT 2-DEED 0.500 0 0 0 NR NR 0
HIST LF 0.500 0 0 0 NR NR 0
TC01199464.29r Page 4
MAP FINDINGS SUMMARY
Search
Target Distance Total
Database Property (Miles) < 1/8 1/8 - 1/4 1/4 - 1/2 1/2 - 1 >1 Plotted
ARCHIVE AST TP NR NR NR NR NR 0
UNREG LTANKS 0.500 0 0 0 NR NR 0
Coal Gas 1.000 0 0 0 0 NR 0
US BROWNFIELDS 0.500 0 0 0 NR NR 0
AUL 0.250 0 0 NR NR NR 0
VCP 0.500 0 0 0 NR NR 0
BROWNFIELDS 0.500 0 0 0 NR NR 0
NOTES:
AQUIFLOW - see EDR Physical Setting Source Addendum
TP = Target Property
NR = Not Requested at this Search Distance
Sites may be listed in more than one database
TC01199464.29r Page 5
Map ID MAP FINDINGS
Direction
Distance
Distance (ft.) EDR ID Number
Elevation Site Database(s) EPA ID Number
Coal Gas Site Search: No site was found in a search of Real Property Scan’s ENVIROHAZ database.
1 TOWER MINI MKT UST U001099728

West THIRD & MAPLE ST N/A
< 1/8 MOUNT CARMEL, PA 17851
154 ft.
Relative: UST:
Lower Facility ID: 585842
Capacity: 4000
Actual: Date Installed: 10/01/1989
1084 ft. Tank Seq No: 001
Chemical: GAS
Tank Status: Currently in Use
Municipality Name : Mount Carmel
Client Id Number : 172490
Mailing Name : TOWER SALES INC
Mailing Address: 947 E GRAND AVE
PO BOX A
TOWER CITY, PA 17980
Other Id : 49-05326
Secondary Facility Address Not
: reported
Region Code Name : NC REGIONAL OFFICE, WILLIAMSPORT
Regulated Expiration Dt: 4-Aug-04
Tank Code : UST
Inspection Code : FOI
Tank Last Dt Inspected : 17-Oct-03
Status Code End Date : Not reported
Tank Substance Date End : Not reported
Region Code : 4400
Facility ID: 585842
Capacity: 4000
Date Installed: 10/01/1989
Tank Seq No: 002
Chemical: GAS
PO BOX A
Other Id : 49-05326
: reported
Tank Code : UST
Region Code : 4400
Facility ID: 585842
Capacity: 4000
Tank Seq No: 003
TC01199464.29r Page 6
Map ID MAP FINDINGS
Direction
Distance
TOWER MINI MKT (Continued) U001099728

Chemical: GAS
PO BOX A
Other Id : 49-05326
: reported
Tank Code : UST
Region Code : 4400
Facility ID: 585842
Capacity: 4000
Tank Seq No: 004
Chemical: GAS
PO BOX A
Other Id : 49-05326
: reported
Tank Code : UST
Region Code : 4400
Facility ID: 585842
Capacity: 2000
Tank Seq No: 005
Chemical: KERO
PO BOX A
Other Id : 49-05326
: reported
TC01199464.29r Page 7
Map ID MAP FINDINGS
Direction
Distance
TOWER MINI MKT (Continued) U001099728

Tank Code : UST
Region Code : 4400
2 K’S CLNRS RCRIS-SQG 1001818640

ENE 10 N OAK ST FINDS PAR000040188
< 1/8 MT CARMEL, PA 17851
166 ft.
Relative: RCRIS:
Higher Owner: KONDISKO TOM
(570) 339-1484
Actual: EPA ID: PAR000040188
1093 ft.
Contact: Not reported
Classification: Small Quantity Generator
TSDF Activities: Not reported
Violation Status: Violations exist
Regulation Violated: 261a.5(b)
Area of Violation: GENERATOR-OTHER REQUIREMENTS
Date Violation Determined: 09/01/1999
Actual Date Achieved Compliance: 12/07/1999
Regulation Violated: 6018.401(a)
Area of Violation: GENERATOR-OTHER REQUIREMENTS
Date Violation Determined: 09/01/1999
Actual Date Achieved Compliance: 12/08/1999
There are 2 violation record(s) reported at this site:

Date of
________________________________________
Evaluation ________________________
Area of Violation __________
Compliance
FINDS:
Other Pertinent Environmental Activity Identified at Site:
AIRS/AIRS Facility Subystem (AIRS/AFS)
Pennsylvania Environment, Facility, Application, Compliance Tracking System (PA-EFACTS)
Resource Conservation and Recovery Act Information system (RCRAINFO)
3 RAYS GULF UST U001461595

NNE 150 N OAK ST N/A
326 ft.
Relative: UST:
Higher Facility ID: 586072
Capacity: 4000
Chemical: GAS
Mailing Name : RAYMOND G KORNACKI
Mailing Address: 150 N OAK ST
TC01199464.29r Page 8
Map ID MAP FINDINGS
Direction
Distance
RAYS GULF (Continued) U001461595

Other Id : 49-70630
: reported
Tank Code : UST
Tank Last Dt Inspected : 23-May-02
Region Code : 4400
Facility ID: 586072
Capacity: 4000
Tank Seq No: 004
Chemical: DIESL
Other Id : 49-70630
: reported
Tank Code : UST
Region Code : 4400
Facility ID: 586072
Capacity: 6000
Tank Seq No: 005
Chemical: GAS
Other Id : 49-70630
: reported
Tank Code : UST
Region Code : 4400
Facility ID: 586072
Capacity: 4000
Tank Seq No: 006
TC01199464.29r Page 9
Map ID MAP FINDINGS
Direction
Distance
RAYS GULF (Continued) U001461595

Chemical: GAS
Other Id : 49-70630
: reported
Tank Code : UST
Region Code : 4400
4 MT CARMEL BORO NORTHUMBERLAND CNTY UST U001961507

SSE 121 S OAK ST LUST N/A
519 ft.
Relative: LUST:
Lower Facility Id: 49-08502
Facility Address 2: Not reported
Actual: Facility Type: Underground Storage Tank Containing Petroleum
1074 ft. Facility Status: Cleanup Completed
Status Date: 04/22/1992
Description : MOUNT CARMEL BOROUGH GARAGE
Release Date: 08/05/1989
Region: NC-4
UST:
Facility ID: 264784
Capacity: 1000
Tank Seq No: 003
Chemical: DIESL
Mailing Name : MOUNT CARMEL BORO NORTHUMBERLAND CNTY
Mailing Address: 121 S OAK ST
Other Id : 49-08502
: reported
Tank Code : UST
Region Code : 4400
Facility ID: 264784
Capacity: 2000
TC01199464.29r Page 10
Map ID MAP FINDINGS
Direction
Distance
MT CARMEL BORO NORTHUMBERLAND CNTY (Continued) U001961507

Tank Seq No: 004
Chemical: GAS
Mailing Name : MOUNT CARMEL BORO NORTHUMBERLAND CNTY
Mailing Address: 121 S OAK ST
Other Id : 49-08502
: reported
Tank Code : UST
Region Code : 4400
5 TURKEY HILL 133 UST U001464903

SE 130 E 5TH ST N/A
1/8-1/4 MOUNT CARMEL, PA 17851
1072 ft.
Relative: UST:
Higher Facility ID: 585859
Capacity: 8000
Chemical: GAS
Mailing Name : TURKEY HILL MINIT MKT
Mailing Address: 257 CENTERVILLE RD
LANCASTER, PA 17603
Other Id : 49-08901
: reported
Tank Code : UST
Region Code : 4400
Facility ID: 585859
Capacity: 8000
Tank Seq No: 002
Chemical: GAS
LANCASTER, PA 17603
Other Id : 49-08901
TC01199464.29r Page 11
Map ID MAP FINDINGS
Direction
Distance
TURKEY HILL 133 (Continued) U001464903

: reported
Tank Code : UST
Region Code : 4400
Facility ID: 585859
Capacity: 6000
Tank Seq No: 003
Chemical: GAS
LANCASTER, PA 17603
Other Id : 49-08901
: reported
Tank Code : UST
Region Code : 4400
6 KEYSTONE PRINTING AND GRAPHIC RCRIS-SQG 1004772572

North 483 N OAK ST FINDS PA0000488080
1/8-1/4 SHAMOKIN, PA 17872
1276 ft.
Relative: RCRIS:
Lower Owner: JOSEPH SHEPARD
(717) 648-5785
Actual: EPA ID: PA0000488080
1051 ft.
Contact: DAN BURANICH
(717) 648-5785
Classification: Conditionally Exempt Small Quantity Generator
TSDF Activities: Not reported
Violation Status: No violations found
FINDS:
Other Pertinent Environmental Activity Identified at Site:
Pennsylvania Environment, Facility, Application, Compliance Tracking System (PA-EFACTS)
Resource Conservation and Recovery Act Information system (RCRAINFO)
TC01199464.29r Page 12
Map ID MAP FINDINGS
Direction
Distance
7 MIRIELLO SVC STA LUST S105802274

ENE 550 E 3RD ST N/A
1/4-1/2 MOUNT CARMEL, PA
2394 ft.
Relative: LUST:
Lower Facility Id: 49-24516
Facility Address 2: Not reported
Actual: Facility Type: Underground Storage Tank Containing Petroleum
1064 ft. Facility Status: Cleanup Completed
Status Date: 10/30/1997
Description : MIRIELLO SERVICE STATION
Release Date: 08/05/1989
Region: NC-4
TC01199464.29r Page 13
ORPHAN SUMMARY
City EDR ID Site Name Site Address Zip Database(s)
ATLAS 1000324506 KUZO BROTHERS RT 61 BOX 425 17851 RCRIS-SQG, FINDS, LUST
ATLAS 1004772642 TADDEO BODY WORKS MT CARMEL SHAMOKIN HWY RT 61 17851 RCRIS-SQG, FINDS
BLOOMSBURG S103821819 BLOOMSBURG MUN AUTH (J.L. MCDOWEL) TR #481 RR #5 17851 SWF/LF
MOUNT CARMEL 1003867069 MOUNT CARMEL TOWNSHIP LANDFILL- NATALIE ROUTE 54 IN NATALIE 17851 CERC-NFRAP
MOUNT CARMEL U003918994 UNI MART 44130 ROUTE 61 ATLAS 17851 UST
MOUNT CARMEL S105802259 CAPITAL PETRO ROUTE 61 / 54 LUST
MOUNT CARMEL 1007287157 MOUNT CARMEL SCHOOL DISTRICT 600 WEST FIFTH STREET 17851 FTTS INSP
MOUNT CARMEL S105802284 SUNOCO 0003 2037 NEC FIFTH / MARKET LUST
MOUNT CARMEL S105816150 PPL POLE SITE NO 158 ORANGE ST VCP
MOUNT CARMEL 1005816436 MOUNT CARMEL PLANT PENNSYLVANIA 61 AND 54 17851 FINDS
MOUNT CARMEL 1007151456 MOUNT CARMEL BORO AUTH STATE ROUTE 2024, W OF PA ROUTE 54 17851 FINDS
MOUNT CARMEL G000000121 MOUNT CARMEL GAS LIGHT CO. VINE STREET 17851 Coal Gas
MT CARMEL 1004583399 ALUMO PROD CO/MT CARMEL PLT SR 2038 17851 FINDS
MT CARMEL 1004583400 MOUNT CARMEL GREENHOUSE PA 54 & 61 17851 FINDS
MT CARMEL 1001080906 BULLSEYE FORD INC RT 61 ATLASS 1 MI E OF RT 61 & 17851 RCRIS-SQG, FINDS
MT CARMEL 1006240112 MT CARMEL FLYASH FAC MARION HEIGHTS RD 17851 FINDS
MT CARMEL 1000695546 NORTHEAST INDUSTRIAL SERV CORP OFF RT 901 LOCUST SUMMIT 17851 RCRIS-SQG, FINDS
MT CARMEL 1003865603 MT. CARMEL GAS PLANT RAILROAD & VINE STS 17851 CERC-NFRAP
MT CARMEL 1003865324 MOUNT CARMEL BOROUGH LANFILL - ATLAS 1.5 M W OF MT CARMEL 17851 CERC-NFRAP
TC01199464.29r Page 14
GOVERNMENT RECORDS SEARCHED / DATA CURRENCY TRACKING
To maintain currency of the following federal and state databases, EDR contacts the appropriate governmental agency
on a monthly or quarterly basis, as required.
Elapsed ASTM days: Provides confirmation that this EDR report meets or exceeds the 90-day updating requirement
of the ASTM standard.
FEDERAL ASTM STANDARD RECORDS
NPL: National Priority List

Source: EPA
Telephone: N/A
National Priorities List (Superfund). The NPL is a subset of CERCLIS and identifies over 1,200 sites for priority
cleanup under the Superfund Program. NPL sites may encompass relatively large areas. As such, EDR provides polygon
coverage for over 1,000 NPL site boundaries produced by EPA’s Environmental Photographic Interpretation Center
(EPIC) and regional EPA offices.
Date of Government Version: 04/27/04 Date of Data Arrival at EDR: 05/04/04
Date Made Active at EDR: 05/21/04 Elapsed ASTM days: 17
Database Release Frequency: Semi-Annually Date of Last EDR Contact: 05/04/04
NPL Site Boundaries

Sources:
EPA’s Environmental Photographic Interpretation Center (EPIC)
Telephone: 202-564-7333
EPA Region 1 EPA Region 6
Telephone 617-918-1143 Telephone: 214-655-6659
EPA Region 3 EPA Region 8
Telephone 215-814-5418 Telephone: 303-312-6774
EPA Region 4
Telephone 404-562-8033
Proposed NPL: Proposed National Priority List Sites

Source: EPA
Telephone: N/A
CERCLIS: Comprehensive Environmental Response, Compensation, and Liability Information System

Source: EPA
Telephone: 703-413-0223
CERCLIS contains data on potentially hazardous waste sites that have been reported to the USEPA by states, municipalities,
private companies and private persons, pursuant to Section 103 of the Comprehensive Environmental Response, Compensation,
and Liability Act (CERCLA). CERCLIS contains sites which are either proposed to or on the National Priorities
List (NPL) and sites which are in the screening and assessment phase for possible inclusion on the NPL.
Database Release Frequency: Quarterly Date of Last EDR Contact: 03/22/04
CERCLIS-NFRAP: CERCLIS No Further Remedial Action Planned

Source: EPA
Telephone: 703-413-0223
As of February 1995, CERCLIS sites designated "No Further Remedial Action Planned" (NFRAP) have been removed
from CERCLIS. NFRAP sites may be sites where, following an initial investigation, no contamination was found,
contamination was removed quickly without the need for the site to be placed on the NPL, or the contamination
was not serious enough to require Federal Superfund action or NPL consideration. EPA has removed approximately
25,000 NFRAP sites to lift the unintended barriers to the redevelopment of these properties and has archived them
as historical records so EPA does not needlessly repeat the investigations in the future. This policy change is
part of the EPA’s Brownfields Redevelopment Program to help cities, states, private investors and affected citizens
to promote economic redevelopment of unproductive urban sites.
TC01199464.29r Page GR-1


Database Release Frequency: Quarterly Date of Last EDR Contact: 03/22/04
CORRACTS: Corrective Action Report

Source: EPA
Telephone: 800-424-9346
CORRACTS identifies hazardous waste handlers with RCRA corrective action activity.
RCRIS: Resource Conservation and Recovery Information System

Source: EPA
Telephone: 800-424-9346
Resource Conservation and Recovery Information System. RCRIS includes selective information on sites which generate,
transport, store, treat and/or dispose of hazardous waste as defined by the Resource Conservation and Recovery
Act (RCRA). Conditionally exempt small quantity generators (CESQGs): generate less than 100 kg of hazardous
waste, or less than 1 kg of acutely hazardous waste per month. Small quantity generators (SQGs): generate between
100 kg and 1,000 kg of hazardous waste per month. Large quantity generators (LQGs): generate over 1,000 kilograms
(kg) of hazardous waste, or over 1 kg of acutely hazardous waste per month. Transporters are individuals or
entities that move hazardous waste from the generator off-site to a facility that can recycle, treat, store, or
dispose of the waste. TSDFs treat, store, or dispose of the waste.
Database Release Frequency: Varies Date of Last EDR Contact: 04/20/04
ERNS: Emergency Response Notification System

Source: National Response Center, United States Coast Guard
Telephone: 202-260-2342
Emergency Response Notification System. ERNS records and stores information on reported releases of oil and hazardous
substances.
Database Release Frequency: Annually Date of Last EDR Contact: 04/26/04
FEDERAL ASTM SUPPLEMENTAL RECORDS
BRS: Biennial Reporting System

Source: EPA/NTIS
Telephone: 800-424-9346
The Biennial Reporting System is a national system administered by the EPA that collects data on the generation
and management of hazardous waste. BRS captures detailed data from two groups: Large Quantity Generators (LQG)
and Treatment, Storage, and Disposal Facilities.
Date of Government Version: 12/01/01 Date of Last EDR Contact: 03/16/04
Database Release Frequency: Biennially Date of Next Scheduled EDR Contact: 06/14/04
CONSENT: Superfund (CERCLA) Consent Decrees

Source: EPA Regional Offices
Telephone: Varies
Major legal settlements that establish responsibility and standards for cleanup at NPL (Superfund) sites. Released
periodically by United States District Courts after settlement by parties to litigation matters.
Date of Government Version: N/A Date of Last EDR Contact: N/A
Database Release Frequency: Varies Date of Next Scheduled EDR Contact: N/A
TC01199464.29r Page GR-2

ROD: Records Of Decision

Source: EPA
Telephone: 703-416-0223
Record of Decision. ROD documents mandate a permanent remedy at an NPL (Superfund) site containing technical
and health information to aid in the cleanup.
Database Release Frequency: Annually Date of Next Scheduled EDR Contact: 07/05/04
DELISTED NPL: National Priority List Deletions

Source: EPA
Telephone: N/A
The National Oil and Hazardous Substances Pollution Contingency Plan (NCP) establishes the criteria that the
EPA uses to delete sites from the NPL. In accordance with 40 CFR 300.425.(e), sites may be deleted from the
NPL where no further response is appropriate.
Database Release Frequency: Quarterly Date of Next Scheduled EDR Contact: 08/02/04
FINDS: Facility Index System/Facility Identification Initiative Program Summary Report

Source: EPA
Telephone: N/A
Facility Index System. FINDS contains both facility information and ’pointers’ to other sources that contain more
detail. EDR includes the following FINDS databases in this report: PCS (Permit Compliance System), AIRS (Aerometric
Information Retrieval System), DOCKET (Enforcement Docket used to manage and track information on civil judicial
enforcement cases for all environmental statutes), FURS (Federal Underground Injection Control), C-DOCKET (Criminal
Docket System used to track criminal enforcement actions for all environmental statutes), FFIS (Federal Facilities
Information System), STATE (State Environmental Laws and Statutes), and PADS (PCB Activity Data System).
HMIRS: Hazardous Materials Information Reporting System

Source: U.S. Department of Transportation
Telephone: 202-366-4555
Hazardous Materials Incident Report System. HMIRS contains hazardous material spill incidents reported to DOT.
MLTS: Material Licensing Tracking System

Source: Nuclear Regulatory Commission
Telephone: 301-415-7169
MLTS is maintained by the Nuclear Regulatory Commission and contains a list of approximately 8,100 sites which
possess or use radioactive materials and which are subject to NRC licensing requirements. To maintain currency,
EDR contacts the Agency on a quarterly basis.
MINES: Mines Master Index File

Source: Department of Labor, Mine Safety and Health Administration
Telephone: 303-231-5959
Database Release Frequency: Semi-Annually Date of Next Scheduled EDR Contact: 06/28/04
NPL LIENS: Federal Superfund Liens

Source: EPA
Telephone: 202-564-4267
Federal Superfund Liens. Under the authority granted the USEPA by the Comprehensive Environmental Response, Compensation
and Liability Act (CERCLA) of 1980, the USEPA has the authority to file liens against real property in order
to recover remedial action expenditures or when the property owner receives notification of potential liability.
USEPA compiles a listing of filed notices of Superfund Liens.
TC01199464.29r Page GR-3


Database Release Frequency: No Update Planned Date of Next Scheduled EDR Contact: 05/24/04
PADS: PCB Activity Database System

Source: EPA
Telephone: 202-564-3887
PCB Activity Database. PADS Identifies generators, transporters, commercial storers and/or brokers and disposers
of PCB’s who are required to notify the EPA of such activities.
DOD: Department of Defense Sites

Source: USGS
Telephone: 703-692-8801
This data set consists of federally owned or administered lands, administered by the Department of Defense, that
have any area equal to or greater than 640 acres of the United States, Puerto Rico, and the U.S. Virgin Islands.
STORMWATER: Storm Water General Permits

Source: Environmental Protection Agency
Telephone: 202 564-0746
A listing of all facilities with Storm Water General Permits.
Database Release Frequency: Quarterly Date of Next Scheduled EDR Contact: N/A
INDIAN RESERV: Indian Reservations

Source: USGS
Telephone: 202-208-3710
This map layer portrays Indian administered lands of the United States that have any area equal to or greater
than 640 acres.
US BROWNFIELDS: A Listing of Brownfields Sites

Telephone: 202-566-2777
Included in the listing are brownfields properties addresses by Cooperative Agreement Recipients and brownfields
properties addressed by Targeted Brownfields Assessments. Targeted Brownfields Assessments-EPA’s Targeted Brownfields
Assessments (TBA) program is designed to help states, tribes, and municipalities--especially those without EPA
Brownfields Assessment Demonstration Pilots--minimize the uncertainties of contamination often associated with
brownfields. Under the TBA program, EPA provides funding and/or technical assistance for environmental assessments
at brownfields sites throughout the country. Targeted Brownfields Assessments supplement and work with other efforts
under EPA’s Brownfields Initiative to promote cleanup and redevelopment of brownfields. Cooperative Agreement
Recipients-States, political subdivisions, territories, and Indian tribes become BCRLF cooperative agreement recipients
when they enter into BCRLF cooperative agreements with the U.S. EPA. EPA selects BCRLF cooperative agreement recipients
based on a proposal and application process. BCRLF cooperative agreement recipients must use EPA funds provided
through BCRLF cooperative agreement for specified brownfields-related cleanup activities.
RMP: Risk Management Plans

Telephone: 202-564-8600
When Congress passed the Clean Air Act Amendments of 1990, it required EPA to publish regulations and guidance
for chemical accident prevention at facilities using extremely hazardous substances. The Risk Management Program
Rule (RMP Rule) was written to implement Section 112(r) of these amendments. The rule, which built upon existing
industry codes and standards, requires companies of all sizes that use certain flammable and toxic substances
to develop a Risk Management Program, which includes a(n): Hazard assessment that details the potential effects
of an accidental release, an accident history of the last five years, and an evaluation of worst-case and alternative
accidental releases; Prevention program that includes safety precautions and maintenance, monitoring, and employee
training measures; and Emergency response program that spells out emergency health care, employee training measures
and procedures for informing the public and response agencies (e.g the fire department) should an accident occur.
TC01199464.29r Page GR-4


Database Release Frequency: N/A Date of Next Scheduled EDR Contact: N/A
FUDS: Formerly Used Defense Sites

Source: U.S. Army Corps of Engineers
Telephone: 202-528-4285
The listing includes locations of Formerly Used Defense Sites properties where the US Army Corps of Engineers
is actively working or will take necessary cleanup actions.
Database Release Frequency: Varies Date of Next Scheduled EDR Contact: 07/05/04
RAATS: RCRA Administrative Action Tracking System

Source: EPA
Telephone: 202-564-4104
RCRA Administration Action Tracking System. RAATS contains records based on enforcement actions issued under RCRA
pertaining to major violators and includes administrative and civil actions brought by the EPA. For administration
actions after September 30, 1995, data entry in the RAATS database was discontinued. EPA will retain a copy of
the database for historical records. It was necessary to terminate RAATS because a decrease in agency resources
made it impossible to continue to update the information contained in the database.
Database Release Frequency: No Update Planned Date of Next Scheduled EDR Contact: 06/07/04
TRIS: Toxic Chemical Release Inventory System

Source: EPA
Telephone: 202-566-0250
Toxic Release Inventory System. TRIS identifies facilities which release toxic chemicals to the air, water and
land in reportable quantities under SARA Title III Section 313.
TSCA: Toxic Substances Control Act

Source: EPA
Telephone: 202-260-5521
Toxic Substances Control Act. TSCA identifies manufacturers and importers of chemical substances included on the
TSCA Chemical Substance Inventory list. It includes data on the production volume of these substances by plant
site.
Database Release Frequency: Every 4 Years Date of Next Scheduled EDR Contact: 06/07/04
FTTS INSP: FIFRA/ TSCA Tracking System - FIFRA (Federal Insecticide, Fungicide, & Rodenticide Act)/TSCA (Toxic Substances Control Act)
Source: EPA
Telephone: 202-564-2501
SSTS: Section 7 Tracking Systems

Source: EPA
Telephone: 202-564-5008
Section 7 of the Federal Insecticide, Fungicide and Rodenticide Act, as amended (92 Stat. 829) requires all
registered pesticide-producing establishments to submit a report to the Environmental Protection Agency by March
1st each year. Each establishment must report the types and amounts of pesticides, active ingredients and devices
being produced, and those having been produced and sold or distributed in the past year.
TC01199464.29r Page GR-5

FTTS: FIFRA/ TSCA Tracking System - FIFRA (Federal Insecticide, Fungicide, & Rodenticide Act)/TSCA (Toxic Substances Control Act)
Source: EPA/Office of Prevention, Pesticides and Toxic Substances
Telephone: 202-564-2501
FTTS tracks administrative cases and pesticide enforcement actions and compliance activities related to FIFRA,
TSCA and EPCRA (Emergency Planning and Community Right-to-Know Act). To maintain currency, EDR contacts the
Agency on a quarterly basis.
STATE OF PENNSYLVANIA ASTM STANDARD RECORDS
SHWS: Hazardous Sites Cleanup Act Site List

Source: Department Environmental Protection
Telephone: 717-783-7816
The Hazardous Sites Cleanup Act Site List includes sites listed on PA Priority List, sites delisted from PA Priority
List, Interim Response Completed sites, and Sites Being Studied or Response Being Planned.
PA SWF/LF:
SWF/LF: Solid Waste Facility Inventory/Transfer Stations
Source: Department of Environmental Protection
Telephone: 717-783-9258
Solid Waste Facilities/Landfill Sites. SWF/LF type records typically contain an inventory of solid waste disposal
facilities or landfills in a particular state. Depending on the state, these may be active or inactive facilities
or open dumps that failed to meet RCRA Subtitle D Section 4004 criteria for solid waste landfills or disposal
sites. Database addresses may represent a sites locational and/or mailing address.
Database Release Frequency: No Update Planned Date of Last EDR Contact: 03/22/04
SWF/LF: Operating Facilities

Telephone: 717-787-7564
SWF/LF: Transfer Stations

Telephone: 717-787-7564
A listing of transfer stations.
SWF/LF: Inactive Solid Waste Landfill

Telephone: 717-783-9258
Inactive Solid Waste Facilities. This listing is no longer updated by the state.
Database Release Frequency: No Update Planned Date of Last EDR Contact: 03/22/04
TC01199464.29r Page GR-6

LUST: Storage Tank Release Sites

Telephone: 717-783-7509
Leaking Underground Storage Tank Incident Reports. LUST records contain an inventory of reported leaking underground
storage tank incidents. Not all states maintain these records, and the information stored varies by state.
UST: Listing of Pennsylvania Regulated Underground Storage Tanks

Telephone: 717-772-5599
Registered Underground Storage Tanks. UST’s are regulated under Subtitle I of the Resource Conservation and Recovery
Act (RCRA) and must be registered with the state department responsible for administering the UST program. Available
information varies by state program.
VCP: Voluntary Cleanup Program Sites

Telephone: 717-783-2388
Sites involved in the Voluntary Cleanup Program
ARCHIVE UST: Archived Underground Storage Tank Sites

Telephone: 717-772-5599
The list includes tanks storing highly hazardous substances that were removed from the DEP’s Storage Tank Information
database because of the Department’s policy on sensitive information. The list also may include tanks that are
removed or permanently closed.
STATE OF PENNSYLVANIA ASTM SUPPLEMENTAL RECORDS
AST: Listing of Pennsylvania Regulated Aboveground Storage Tanks

Telephone: 717-772-5599
Registered Aboveground Storage Tanks.
LAST: Storage Tank Release Sites

Telephone: 717-783-7509
Leaking Aboveground Storage Tank Incident Reports.
TC01199464.29r Page GR-7

ACT 2-DEED: Act 2-Deed Acknowledgment Sites

Telephone: 717-783-9470
This listing pertains to sites where the Department has approved a cleanup requiring a deed acknowledgment under
Act 2. This list includes sites remediated to a non-residential Statewide health standard (Section 303(g));
all sites demonstrating attainment of a Site-specific standard (Section 304(m)); and sites being remediated
as a special industrial area (Section 305(g)). Persons who remediated a site to a standard that requires a
deed acknowledgment shall comply with the requirements of the Solid Waste Management Act or the Hazardous Sites
Cleanup Act, as referenced in Act 2. These statutes require a property description section in the deed concerning
the hazardous substance disposal on the site. The location of disposed hazardous substances and a description
of the type of hazardous substances disposed on the site shall be included in the deed acknowledgment. A deed
acknowledgment is required at the time of conveyance of the property.
UNREG LTANKS: Unregulated Tank Cases

Telephone: 717-783-7509
Leaking storage tank cases from unregulated storage tanks.
Database Release Frequency: No Update Planned Date of Next Scheduled EDR Contact: N/A
HIST LF: Abandoned Landfill Inventory

Telephone: 717-787-7564
The report provides facility information recorded in the Pennsylvania Department of Environmental Protection ALI
database. Some of this information has been abstracted from old records and may not accurately reflect the current
conditions and status at these facilities
ARCHIVE AST: Archived Aboveground Storage Tank Sites

Telephone: 717-772-5599
The list includes aboveground tanks with a capacity greater than 21,000 gallons that were removed from the DEP’s
Storage Tank Information database because of the Department’s policy on sensitive information. The list also may
include tanks that are removed or permanently closed.
Former Manufactured Gas (Coal Gas) Sites: The existence and location of Coal Gas sites is provided exclusively to
EDR by Real Property Scan, Inc. ©Copyright 1993 Real Property Scan, Inc. For a technical description of the types
of hazards which may be found at such sites, contact your EDR customer service representative.
Disclaimer Provided by Real Property Scan, Inc.

The information contained in this report has predominantly been obtained from publicly available sources produced by entities
other than Real Property Scan. While reasonable steps have been taken to insure the accuracy of this report, Real Property
Scan does not guarantee the accuracy of this report. Any liability on the part of Real Property Scan is strictly limited to a refund
of the amount paid. No claim is made for the actual existence of toxins at any site. This report does not constitute a legal
opinion.
TC01199464.29r Page GR-8

AUL: Engineering and Institutional Controls at Act 2 Sites

Telephone: 717-783-9470
Activity and use limitations include both engineering controls and institutional controls. Under Act 2 and the
accompanying regulations, Administration of Land Recycling Program, persons who perform a site cleanup using a
site-specific standard or affect a special industrial area cleanup may use engineering or institutional controls
to attain the cleanup. The sites listed had either an engineering control and/or an instituitional control used
in the remediation of the site.
VCP: Voluntary Cleanup Program Sites

Telephone: 717-783-2388
Sites involved in the Voluntary Cleanup Program
BROWNFIELDS: Brownfields Sites

Telephone: 717-783-7509
US BROWNFIELDS: A Listing of Brownfields Sites

Telephone: 202-566-2777
Included in the listing are brownfields properties addresses by Cooperative Agreement Recipients and brownfields
properties addressed by Targeted Brownfields Assessments. Targeted Brownfields Assessments-EPA’s Targeted Brownfields
Assessments (TBA) program is designed to help states, tribes, and municipalities--especially those without EPA
Brownfields Assessment Demonstration Pilots--minimize the uncertainties of contamination often associated with
brownfields. Under the TBA program, EPA provides funding and/or technical assistance for environmental assessments
at brownfields sites throughout the country. Targeted Brownfields Assessments supplement and work with other efforts
under EPA’s Brownfields Initiative to promote cleanup and redevelopment of brownfields. Cooperative Agreement
Recipients-States, political subdivisions, territories, and Indian tribes become BCRLF cooperative agreement recipients
when they enter into BCRLF cooperative agreements with the U.S. EPA. EPA selects BCRLF cooperative agreement recipients
based on a proposal and application process. BCRLF cooperative agreement recipients must use EPA funds provided
through BCRLF cooperative agreement for specified brownfields-related cleanup activities.
Database Release Frequency: Semi-Annually Date of Next Scheduled EDR Contact: N/A
OTHER DATABASE(S)
Depending on the geographic area covered by this report, the data provided in these specialty databases may or may not be
complete. For example, the existence of wetlands information data in a specific report does not mean that all wetlands in the
area covered by the report are included. Moreover, the absence of any reported wetlands information does not necessarily
mean that wetlands do not exist in the area covered by the report.
Oil/Gas Pipelines: This data was obtained by EDR from the USGS in 1994. It is referred to by USGS as GeoData Digital Line Graphs
from 1:100,000-Scale Maps. It was extracted from the transportation category including some oil, but primarily
gas pipelines.
Electric Power Transmission Line Data

Source: PennWell Corporation
Telephone: (800) 823-6277
This map includes information copyrighted by PennWell Corporation. This information is provided
on a best effort basis and PennWell Corporation does not guarantee its accuracy nor warrant its
fitness for any particular purpose. Such information has been reprinted with the permission of PennWell.
TC01199464.29r Page GR-9

Sensitive Receptors: There are individuals deemed sensitive receptors due to their fragile immune systems and special sensitivity
to environmental discharges. These sensitive receptors typically include the elderly, the sick, and children. While the location of all
sensitive receptors cannot be determined, EDR indicates those buildings and facilities - schools, daycares, hospitals, medical centers,
and nursing homes - where individuals who are sensitive receptors are likely to be located.
AHA Hospitals:
Source: American Hospital Association, Inc.
Telephone: 312-280-5991
The database includes a listing of hospitals based on the American Hospital Association’s annual survey of hospitals.
Medical Centers: Provider of Services Listing
Source: Centers for Medicare & Medicaid Services
Telephone: 410-786-3000
A listing of hospitals with Medicare provider number, produced by Centers of Medicare & Medicaid Services,
a federal agency within the U.S. Department of Health and Human Services.
Nursing Homes
Source: National Institutes of Health
Telephone: 301-594-6248
Information on Medicare and Medicaid certified nursing homes in the United States.
Public Schools
Source: National Center for Education Statistics
Telephone: 202-502-7300
The National Center for Education Statistics’ primary database on elementary
and secondary public education in the United States. It is a comprehensive, annual, national statistical
database of all public elementary and secondary schools and school districts, which contains data that are
comparable across all states.
Private Schools
Source: National Center for Education Statistics
Telephone: 202-502-7300
The National Center for Education Statistics’ primary database on private school locations in the United States.
Daycare Centers: Child Care Facility List
Source: Department of Public Welfare
Telephone: 717-783-3856
Flood Zone Data: This data, available in select counties across the country, was obtained by EDR in 1999 from the Federal
Emergency Management Agency (FEMA). Data depicts 100-year and 500-year flood zones as defined by FEMA.
NWI: National Wetlands Inventory. This data, available in select counties across the country, was obtained by EDR
in 2002 from the U.S. Fish and Wildlife Service.
STREET AND ADDRESS INFORMATION
© 2003 Geographic Data Technology, Inc., Rel. 07/2003. This product contains proprietary and confidential property of Geographic
Data Technology, Inc. Unauthorized use, including copying for other than testing and standard backup procedures, of this product is
expressly prohibited.
TC01199464.29r Page GR-10

GEOCHECK ®- PHYSICAL SETTING SOURCE ADDENDUM
TARGET PROPERTY ADDRESS
MOUNT CARMEL WACHOVIA BANK

50 WEST 3RD STREET
TARGET PROPERTY COORDINATES
Latitude (North): 40.796700 - 40˚ 47’ 48.1’’

Longitude (West): 76.414101 - 76˚ 24’ 50.8’’
Universal Tranverse Mercator: Zone 18
UTM X (Meters): 380702.4
UTM Y (Meters): 4516939.5
Elevation: 1087 ft. above sea level
EDR’s GeoCheck Physical Setting Source Addendum has been developed to assist the environmental professional
with the collection of physical setting source information in accordance with ASTM 1527-00, Section 7.2.3.
Section 7.2.3 requires that a current USGS 7.5 Minute Topographic Map (or equivalent, such as the USGS Digital
Elevation Model) be reviewed. It also requires that one or more additional physical setting sources be sought
when (1) conditions have been identified in which hazardous substances or petroleum products are likely
to migrate to or from the property, and (2) more information than is provided in the current USGS 7.5 Minute
Topographic Map (or equivalent) is generally obtained, pursuant to local good commercial or customary practice,
to assess the impact of migration of recognized environmental conditions in connection with the property. Such
additional physical setting sources generally include information about the topographic, hydrologic, hydrogeologic,
and geologic characteristics of a site, and wells in the area.
Assessment of the impact of contaminant migration generally has two principle investigative components:
1. Groundwater flow direction, and

2. Groundwater flow velocity.
Groundwater flow direction may be impacted by surface topography, hydrology, hydrogeology, characteristics
of the soil, and nearby wells. Groundwater flow velocity is generally impacted by the nature of the geologic strata.
EDR’s GeoCheck Physical Setting Source Addendum is provided to assist the environmental professional in
forming an opinion about the impact of potential contaminant migration.
TC01199464.29r Page A-1

GEOCHECK® - PHYSICAL SETTING SOURCE SUMMARY
GROUNDWATER FLOW DIRECTION INFORMATION

Groundwater flow direction for a particular site is best determined by a qualified environmental professional
using site-specific well data. If such data is not reasonably ascertainable, it may be necessary to rely on other
sources of information, such as surface topographic information, hydrologic information, hydrogeologic data
collected on nearby properties, and regional groundwater flow information (from deep aquifers).
TOPOGRAPHIC INFORMATION
Surface topography may be indicative of the direction of surficial groundwater flow. This information can be used to
assist the environmental professional in forming an opinion about the impact of nearby contaminated properties or,
should contamination exist on the target property, what downgradient sites might be impacted.
TARGET PROPERTY TOPOGRAPHY

USGS Topographic Map: 40076-G4 MOUNT CARMEL, PA
General Topographic Gradient: General NW
Source: USGS 7.5 min quad index
SURROUNDING TOPOGRAPHY: ELEVATION PROFILES
1561
1530
1467
1361
1359
1325
Elevation (ft)
1275
1265
1260
1233
1220
1149
1117
1088
1087
1082
1080
1069
1045
North South
TP
Elevation (ft)
1156
1154
1154
1154
1144
1134
1131
1118
1117
1113
1099
1095
1091
1087
1078
1072
1071
1059
1054
West East
TP
✩ 0 1/2 1 Miles
Target Property Elevation: 1087 ft.
Source: Topography has been determined from the USGS 7.5’ Digital Elevation Model and should be evaluated
on a relative (not an absolute) basis. Relative elevation information between sites of close proximity
should be field verified.
TC01199464.29r Page A-2

HYDROLOGIC INFORMATION
Surface water can act as a hydrologic barrier to groundwater flow. Such hydrologic information can be used to assist
the environmental professional in forming an opinion about the impact of nearby contaminated properties or, should
contamination exist on the target property, what downgradient sites might be impacted.
Refer to the Physical Setting Source Map following this summary for hydrologic information (major waterways
and bodies of water).
FEMA FLOOD ZONE

FEMA Flood
Target Property County Electronic Data
NORTHUMBERLAND, PA YES - refer to the Overview Map and Detail Map
Flood Plain Panel at Target Property: 4207380001C
Additional Panels in search area: 4219420005B

4219420004B
4219420005B
4219420004B
NATIONAL WETLAND INVENTORY

NWI Electronic
NWI Quad at Target Property Data Coverage
MOUNT CARMEL YES - refer to the Overview Map and Detail Map
HYDROGEOLOGIC INFORMATION
Hydrogeologic information obtained by installation of wells on a specific site can often be an indicator
of groundwater flow direction in the immediate area. Such hydrogeologic information can be used to assist the
environmental professional in forming an opinion about the impact of nearby contaminated properties or, should
contamination exist on the target property, what downgradient sites might be impacted.
AQUIFLOW®
Search Radius: 1.000 Mile.
EDR has developed the AQUIFLOW Information System to provide data on the general direction of groundwater
flow at specific points. EDR has reviewed reports submitted by environmental professionals to regulatory
authorities at select sites and has extracted the date of the report, groundwater flow direction as determined
hydrogeologically, and the depth to water table.
LOCATION GENERAL DIRECTION

MAP ID FROM TP GROUNDWATER FLOW
Not Reported
TC01199464.29r Page A-3

GROUNDWATER FLOW VELOCITY INFORMATION

Groundwater flow velocity information for a particular site is best determined by a qualified environmental professional
using site specific geologic and soil strata data. If such data are not reasonably ascertainable, it may be necessary
to rely on other sources of information, including geologic age identification, rock stratigraphic unit and soil
characteristics data collected on nearby properties and regional soil information. In general, contaminant plumes
move more quickly through sandy-gravelly types of soils than silty-clayey types of soils.
GEOLOGIC INFORMATION IN GENERAL AREA OF TARGET PROPERTY

Geologic information can be used by the environmental professional in forming an opinion about the relative speed
at which contaminant migration may be occurring.
ROCK STRATIGRAPHIC UNIT GEOLOGIC AGE IDENTIFICATION
Era: Paleozoic Category: Stratifed Sequence

System: Pennsylvanian
Series: Pennsylvanian
Code: PP (decoded above as Era, System & Series)
Geologic Age and Rock Stratigraphic Unit Source: P.G. Schruben, R.E. Arndt and W.J. Bawiec, Geology
of the Conterminous U.S. at 1:2,500,000 Scale - a digital representation of the 1974 P.B. King and H.M. Beikman
Map, USGS Digital Data Series DDS - 11 (1994).
DOMINANT SOIL COMPOSITION IN GENERAL AREA OF TARGET PROPERTY
The U.S. Department of Agriculture’s (USDA) Soil Conservation Service (SCS) leads the National Cooperative Soil
Survey (NCSS) and is responsible for collecting, storing, maintaining and distributing soil survey information
for privately owned lands in the United States. A soil map in a soil survey is a representation of soil patterns
in a landscape. Soil maps for STATSGO are compiled by generalizing more detailed (SSURGO) soil survey maps.
The following information is based on Soil Conservation Service STATSGO data.
Soil Component Name: UDORTHENTS
Soil Surface Texture: very channery - sandy loam
Hydrologic Group: Class B/D - Drained/undrained hydrology class of soils that can be
drained and are classified.
Soil Drainage Class: Not reported
Hydric Status: Soil does not meet the requirements for a hydric soil.
Corrosion Potential - Uncoated Steel: HIGH
Depth to Bedrock Min: > 20 inches
Depth to Bedrock Max: > 60 inches
Soil Layer Information
Boundary Classification
Layer Upper Lower Soil Texture Class AASHTO Group Unified Soil Permeability Soil Reaction
Rate (in/hr) (pH)
1 0 inches 6 inches very channery - Granular COARSE-GRAINED Max: 6.00 Max: 8.40
sandy loam materials (35 SOILS, Gravels, Min: 0.20 Min: 4.50
pct. or less Gravels with
passing No. fines, Clayey
200), Stone Gravel
Fragments,
Gravel and
Sand.
TC01199464.29r Page A-4

Soil Layer Information
Boundary Classification
Layer Upper Lower Soil Texture Class AASHTO Group Unified Soil Permeability Soil Reaction
Rate (in/hr) (pH)
2 6 inches 60 inches very shaly - Granular COARSE-GRAINED Max: 20.00 Max: 8.40
silt loam materials (35 SOILIS, Min: 0.06 Min: 4.50
pct. or less Gravels, Clean
passing No. Gravels,
200), Stone Well-graded
Fragments, gravel.
Gravel and COARSE-GRAINED
Sand. SOILS, Gravels,
Gravels with
fines, Silty
Gravel.
OTHER SOIL TYPES IN AREA
Based on Soil Conservation Service STATSGO data, the following additional subordinant soil types may
appear within the general area of target property.
Soil Surface Textures: extremely stony - sandy loam

extremely stony - loam
channery - silt loam
channery - loam
very stony - loam
Surficial Soil Types: extremely stony - sandy loam

extremely stony - loam
channery - loam
very stony - loam
Shallow Soil Types: very channery - sandy loam

sandy loam
loam
Deeper Soil Types: unweathered bedrock

gravelly - loam
weathered bedrock
gravelly - sandy clay loam
ADDITIONAL ENVIRONMENTAL RECORD SOURCES
According to ASTM E 1527-00, Section 7.2.2, "one or more additional state or local sources of environmental
records may be checked, in the discretion of the environmental professional, to enhance and supplement federal
and state sources... Factors to consider in determining which local or additional state records, if
any, should be checked include (1) whether they are reasonably ascertainable, (2) whether they are sufficiently
useful, accurate, and complete in light of the objective of the records review (see 7.1.1), and (3) whether they
are obtained, pursuant to local, good commercial or customary practice." One of the record sources listed in Section
7.2.2 is water well information. Water well information can be used to assist the environmental professional in
assessing sources that may impact groundwater flow direction, and in forming an opinion about the impact of
contaminant migration on nearby drinking water wells.
TC01199464.29r Page A-5

WELL SEARCH DISTANCE INFORMATION
DATABASE SEARCH DISTANCE (miles)

Federal USGS 1.000
Federal FRDS PWS Nearest PWS within 1 mile
State Database 1.000
FEDERAL USGS WELL INFORMATION

LOCATION
MAP ID WELL ID FROM TP
A2 USGS0933608 1/2 - 1 Mile SSW
A2 USGS0933608 1/2 - 1 Mile SSW
FEDERAL FRDS PUBLIC WATER SUPPLY SYSTEM INFORMATION

LOCATION
No PWS System Found
Note: PWS System location is not always the same as well location.
STATE DATABASE WELL INFORMATION

LOCATION
A1 DPA00025517 1/2 - 1 Mile SSW
A1 DPA00025517 1/2 - 1 Mile SSW
TC01199464.29r Page A-6

1280
1420 1260
1600
11332000
1460
1200
1300 240 1180
11 60
11220
1580 1120
1100
1560 40 1540
15520
1
1140
1120
1380 20
1360 0 13
120 0
122240
1
13
360 0 1280
134 0
1
130
0
00
1400
40 0 138
11
40 11 126 0
134 60 1260
11 1240
13 1220 1200
0
1140 128
1120
1140
20
1100 0
00 11 0
11
108
6
11 0
1180 0
112 1140 116
1100 118
1180 0 0
112
10
1060
80
10 1080
60 1080
0
1140 12020
12240 0
1160 1 128 13
13
1120 1361
1260
1180 1080
1420
14144060
0 1480
108
0 80 1620
110 11
60
80
16
60
16
0
104 16
0 0
156 164
00
12
20
40
15
15
1120 200
11224
80
15
60 00
14 16
0
64
1
40 0
11 1206 1300 0
134800 20
0
162 0
128 1 14 440 160
1440
1
1540 1540 1520

14184060
0 0 0 20
1180 122 124 150 1460 114400
1380
0 6040
1313
134
0 154
1320 12
0 1320 1300 12
13103020 136
1480 0 1240
132
148
0 1440
1500
1500 1280 1180
420
GEOCHECK ® - PHYSICAL SETTING SOURCE MAP FINDINGS
Map ID
Direction
Distance
Elevation
A1 Database EDR ID Number
SSW PA WELLS DPA00025517
1/2 - 1 Mile
Higher
Site ID: 404702076250801

Local well #: 103 Type of Site: well
Well Depth: 1180 Date Drilled: 01/01/1908
Latitude: 404702 Longitude: 0762508
Lat/Long Accuracy: ACCURATE TO +5 SECONDS Hydrologic Unit: 02050301
County: NORTHUMBERLAND Municipality: MOUNT CARMEL
Formation: 327MCCK Topography: HILLSIDE
Elevation Accuracy: 10 Elevation Method: interpolated from topographic map
Elevation: 1400 Quadrangle: MOUNT CARMEL
Date Record Created: 06/04/1981 Data Reliability: field checked by reporting agency
Date Record Updated: 04/18/1991 Depth Data Source: UNKNOWN
Agency use of site: Inventory Data Site Only
Owner Information:
Owner: MT. CARMEL WATER CO
Date of Ownership: 10/13/1930 Zip Code: Not Reported
Casing Information:
Casing Top: 0 Casing Bottom: 490
Diameter: 8 Casing Wall Thickness: Not Reported
Casing Material: UNKNOWN
Construction Information:
Construction Date: 1908 Finish: Not Reported
Const. Data Source: USGS OR PAGS Construction Method: CABLE TOOL
Driller: BLANCHARD
Geohydrologic Information:
Top of Interval: Not Reported Bottom of Interval: Not Reported
Contributing Unit: PRIMARY Lithology: SANDSTONE
Formation Code: 327MCCK
Hole Information:
Top of the Hole: 0 Bottom of the Hole: 1180
Diameter: 8.00
Aquifer Test Information:

Discharge Date: 03/31/1910 Discharge Type: FLOWING
Data Source: WELL OWNER
Measurement Method: REPORTED, METHOD NOT KNOWN
Discharge: 120 SWL: Not Reported
WL Data Source: Not Reported
WL Measurement Method: Not Reported
Production WL: Not Reported Drawdown: Not Reported
Spec. Cap.: Not Reported Test Length: Not Reported
Status during measurement: Not Reported
Site Use Information:

Date of Use: Not Reported Note: Not Reported
Site Use: WITHDRAWAL
TC01199464.29r Page A-8

Water Use Information:

Use Date: Not Reported Use: PUBLIC SUPPLY
Hydrogeologist Visits Information:

Date of Visit: 10/13/1930 Name of Visitor: LOHMAN
A2
SSW FED USGS USGS0933608
1/2 - 1 Mile
Higher
Agency: USGS Site ID: 404702076250801

Site Name: NU 103
Dec. Latitude: 40.78398
Dec. Longitude: -76.41856
Coord Sys: NAD83
State: PA
County: Northumberland County
Altitude: 1400.00
Hydrologic code: 02050301
Topographic: Hillside (slope)
Site Type: Ground-water other than Spring
Const Date: 19080101 Inven Date: Not Reported
Well Type: Single well, other than collector or Ranney type
Primary Aquifer: 327MCCK
Aquifer type: Not Reported
Well depth: 1176
Hole depth: Not Reported Source: Not Reported
Project no: Not Reported
Ground-water levels, Number of Measurements: 0
A1
SSW PA WELLS DPA00025517
1/2 - 1 Mile
Higher
Site ID: 404702076250801

Local well #: 103 Type of Site: well
Well Depth: 1180 Date Drilled: 01/01/1908
Latitude: 404702 Longitude: 0762508
Lat/Long Accuracy: ACCURATE TO +5 SECONDS Hydrologic Unit: 02050301
County: NORTHUMBERLAND Municipality: MOUNT CARMEL
Formation: 327MCCK Topography: HILLSIDE
Elevation Accuracy: 10 Elevation Method: interpolated from topographic map
Elevation: 1400 Quadrangle: MOUNT CARMEL
Date Record Created: 06/04/1981 Data Reliability: field checked by reporting agency
Date Record Updated: 04/18/1991 Depth Data Source: UNKNOWN
Agency use of site: Inventory Data Site Only
Owner Information:
Owner: MT. CARMEL WATER CO
Date of Ownership: 10/13/1930 Zip Code: Not Reported
Casing Information:
Casing Top: 0 Casing Bottom: 490
Diameter: 8 Casing Wall Thickness: Not Reported
Casing Material: UNKNOWN
TC01199464.29r Page A-9

Construction Information:
Construction Date: 1908 Finish: Not Reported
Const. Data Source: USGS OR PAGS Construction Method: CABLE TOOL
Driller: BLANCHARD
Geohydrologic Information:
Top of Interval: Not Reported Bottom of Interval: Not Reported
Contributing Unit: PRIMARY Lithology: SANDSTONE
Formation Code: 327MCCK
Hole Information:
Top of the Hole: 0 Bottom of the Hole: 1180
Diameter: 8.00
Aquifer Test Information:

Discharge Date: 03/31/1910 Discharge Type: FLOWING
Data Source: WELL OWNER
Measurement Method: REPORTED, METHOD NOT KNOWN
Discharge: 120 SWL: Not Reported
WL Data Source: Not Reported
WL Measurement Method: Not Reported
Production WL: Not Reported Drawdown: Not Reported
Spec. Cap.: Not Reported Test Length: Not Reported
Status during measurement: Not Reported
Site Use Information:

Date of Use: Not Reported Note: Not Reported
Site Use: WITHDRAWAL
Water Use Information:

Use Date: Not Reported Use: PUBLIC SUPPLY
Hydrogeologist Visits Information:

Date of Visit: 10/13/1930 Name of Visitor: LOHMAN
A2
SSW FED USGS USGS0933608
1/2 - 1 Mile
Higher
Agency: USGS Site ID: 404702076250801

Site Name: NU 103
Dec. Latitude: 40.78398
Dec. Longitude: -76.41856
Coord Sys: NAD83
State: PA
County: Northumberland County
Altitude: 1400.00
Hydrologic code: 02050301
Topographic: Hillside (slope)
Site Type: Ground-water other than Spring
Const Date: 19080101 Inven Date: Not Reported
Well Type: Single well, other than collector or Ranney type
TC01199464.29r Page A-10

Primary Aquifer: 327MCCK

Aquifer type: Not Reported
Well depth: 1176
Hole depth: Not Reported Source: Not Reported
Project no: Not Reported
Ground-water levels, Number of Measurements: 0
TC01199464.29r Page A-11

RADON
AREA RADON INFORMATION
State Database: PA Radon
Test Result Statistics
Zip Total Sites Min pCi/L Max pCi/L Avg pCi/L

__ __________ ________ ________ ________
17851 9 1.1 13 3.2
EPA Region 3 Statistical Summary Readings for Zip Code: 17851

Number of sites tested: 38.
Maximum Radon Level: 12.0 pCi/L.
Minimum Radon Level: 0.1 pCi/L.
pCi/L pCi/L pCi/L pCi/L pCi/L pCi/L
<4 4-10 10-20 20-50 50-100 >100
25 (65.79%) 12 (31.58%) 1 (2.63%) 0 (0.00%) 0 (0.00%) 0 (0.00%)
Federal EPA Radon Zone for NORTHUMBERLAND County: 1

Note: Zone 1 indoor average level > 4 pCi/L.
: Zone 2 indoor average level >= 2 pCi/L and <= 4 pCi/L.
: Zone 3 indoor average level < 2 pCi/L.
TC01199464.29r Page A-12

PHYSICAL SETTING SOURCE RECORDS SEARCHED
TOPOGRAPHIC INFORMATION
USGS 7.5’ Digital Elevation Model (DEM)

Source: United States Geologic Survey
EDR acquired the USGS 7.5’ Digital Elevation Model in 2002. 7.5-Minute DEMs correspond to the USGS
1:24,000- and 1:25,000-scale topographic quadrangle maps.
HYDROLOGIC INFORMATION
Flood Zone Data: This data, available in select counties across the country, was obtained by EDR in 1999 from the Federal
Emergency Management Agency (FEMA). Data depicts 100-year and 500-year flood zones as defined by FEMA.
NWI: National Wetlands Inventory. This data, available in select counties across the country, was obtained by EDR
in 2002 from the U.S. Fish and Wildlife Service.
HYDROGEOLOGIC INFORMATION
AQUIFLOWR Information System

Source: EDR proprietary database of groundwater flow information
EDR has developed the AQUIFLOW Information System (AIS) to provide data on the general direction of groundwater
flow at specific points. EDR has reviewed reports submitted to regulatory authorities at select sites and has
extracted the date of the report, hydrogeologically determined groundwater flow direction and depth to water table
information.
GEOLOGIC INFORMATION
Geologic Age and Rock Stratigraphic Unit

Source: P.G. Schruben, R.E. Arndt and W.J. Bawiec, Geology of the Conterminous U.S. at 1:2,500,000 Scale - A digital
representation of the 1974 P.B. King and H.M. Beikman Map, USGS Digital Data Series DDS - 11 (1994).
STATSGO: State Soil Geographic Database

Source: Department of Agriculture, Natural Resources Conservation Services
The U.S. Department of Agriculture’s (USDA) Natural Resources Conservation Service (NRCS) leads the national
Conservation Soil Survey (NCSS) and is responsible for collecting, storing, maintaining and distributing soil
survey information for privately owned lands in the United States. A soil map in a soil survey is a representation
of soil patterns in a landscape. Soil maps for STATSGO are compiled by generalizing more detailed (SSURGO)
soil survey maps.
ADDITIONAL ENVIRONMENTAL RECORD SOURCES
FEDERAL WATER WELLS
PWS: Public Water Systems

Source: EPA/Office of Drinking Water
Telephone: 202-564-3750
Public Water System data from the Federal Reporting Data System. A PWS is any water system which provides water to at
least 25 people for at least 60 days annually. PWSs provide water from wells, rivers and other sources.
PWS ENF: Public Water Systems Violation and Enforcement Data

Source: EPA/Office of Drinking Water
Telephone: 202-564-3750
Violation and Enforcement data for Public Water Systems from the Safe Drinking Water Information System (SDWIS) after
August 1995. Prior to August 1995, the data came from the Federal Reporting Data System (FRDS).
USGS Water Wells: USGS National Water Inventory System (NWIS)

This database contains descriptive information on sites where the USGS collects or has collected data on surface
water and/or groundwater. The groundwater data includes information on wells, springs, and other sources of groundwater.
TC01199464.29r Page A-13

PHYSICAL SETTING SOURCE RECORDS SEARCHED
STATE RECORDS
Pennsylvania Public Water Supply Wells

Source: Pennsylvania Department of Environmental Resources Bureau of Water Supply
Telephone: 717-787-5017
Pennsylvania Groundwater Information System

Source: Department of Conservation and Natural Resources
Telephone: 717-783-7258
RADON
State Database: PA Radon

Telephone: 717-783-3594
Radon Test Results Statistics by Zip Code
Area Radon Information

Source: USGS
Telephone: 703-356-4020
The National Radon Database has been developed by the U.S. Environmental Protection Agency
(USEPA) and is a compilation of the EPA/State Residential Radon Survey and the National Residential Radon Survey.
The study covers the years 1986 - 1992. Where necessary data has been supplemented by information collected at
private sources such as universities and research institutions.
EPA Radon Zones

Source: EPA
Telephone: 703-356-4020
Sections 307 & 309 of IRAA directed EPA to list and identify areas of U.S. with the potential for elevated indoor
radon levels.
EPA Region 3 Statistical Summary Readings

Source: Region 3 EPA
Telephone: 215-814-2082
Radon readings for Delaware, D.C., Maryland, Pennsylvania, Virginia and West Virginia.
OTHER
Airport Landing Facilities: Private and public use landing facilities

Source: Federal Aviation Administration, 800-457-6656
Epicenters: World earthquake epicenters, Richter 5 or greater

Source: Department of Commerce, National Oceanic and Atmospheric Administration
TC01199464.29r Page A-14

APPENDIX C
Historical Information
Subject Property
Scale: 1:24,000 1947 Subject Property

Historical Topographic Map
50 West 3rd Street
Mount Carmel PA 17851
Project No. 7070930 05/04
Subject Property
Scale: 1:24,000 1955 Subject Property

50 West 3rd Street
Project No. 7070930 05/04
Subject Property
Scale: 1:24,000 1955-1969 Subject Property

50 West 3rd Street
Project No. 7070930 05/04
Subject Property
Scale: 1:24,000 1955-1974 Subject Property

50 West 3rd Street
Project No. 7070930 05/04
Subject Property
Scale: 1:24,000 1976

50 West 3rd Street
Project No. 7070930 05/04
Subject Property
Scale: 1:24,000 1894 Adjacent Property

50 West 3rd Street
Project No. 7070930 05/04
Subject Property
Scale: 1:24,000 1955 Adjacent Property

50 West 3rd Street
Project No. 7070930 05/04
APPENDIX D
Previously Produced Reports
APPENDIX E
Staff Qualifications
STEPHEN G. KILPER, PE Litigation Support
Value Engineering
CERCLA & RCRA
Economic Analysis
Solid Waste Projects
Materials Management
Acquisition Due Diligence
Environmental Engineering
Environmental Management
Mine Permitting and Operations
Environmental Construction and Remediation
Construction Management and Quality Assurance
EDUCATION
University of Wisconsin-Madison, B.S., Engineering, 1983
PROFESSIONAL HISTORY
ENTRIX, Inc., Senior Consultant
Earth Sciences Consultants, Inc.
AWS Remediation, Inc.
American Landfill Management, Inc.
Antech Ltd.
American Waste Services, Inc.
U.S. Army
REPRESENTATIVE EXPERIENCE
Mr. Kilper has successfully managed all facets of multiple environmental businesses and has been the
CEO of eight subsidiaries of publicly owned corporations, as well as being a Director of two corporations.
These companies have included: environmental consulting, environmental construction, solid waste
management, and both environmental and radiochemistry laboratories. Mr. Kilper was charged with the
regulatory compliance in these heavily regulated businesses as well as P&L, public affairs, contract
negotiation, marketing, strategic planning, project management, acquisitions, personnel management, and
capital projects. As part of these functions, Mr. Kilper has successfully expedited numerous
environmental and business projects and has added shareholder value to all of these companies.
Mr. Kilper’s major projects have included planning and execution of tens of millions of dollars of
environmental construction and permitting projects that have added hundreds of millions of dollars of
value for the permittee, acquisition due diligence for acquisitions in excess of $150 million, expert witness
projects, economic analysis, value engineering that has saved clients millions of dollars, public meetings,
wetland permitting and mitigation, and several hundred other successful projects. These projects typically
involve all aspects of environmental work including air emissions, land resources, surface and ground
water resources, and logistical evaluations and planning. Mr. Kilper specializes in saving his clients many
multiples of his cost.
Mr. Kilper’s clients include multibillion dollar chemical manufacturers, large government contractors, law
firms, major power companies, the Army Corps of Engineers, state agencies and municipalities, solid
waste management companies, steel companies, developers, rail and road transportation companies, and a
myriad of large and small industrial concerns. His regulatory agency relationships have resulted in some
of the shortest approvals ever seen in Ohio, allowing his clients to enjoy expenditure savings and/or
revenue enhancement sometimes years ahead of similar projects managed by others.
STEPHEN G. KILPER, PE
PROJECT EXPERIENCE
Solid Waste Disposal Facility Design/Permitting, Stark County, OH – Project Director and Designer for
the redesign and permitting of a 1970’s era solid waste disposal facility including hydrogeologic
assessment, design of facility, environmental control design, permitting, and public relations for a 25
million cubic yard expansion/upgrade.
Expert Witness Report, Allegheny County, PA – Provided expert witness report for litigation between a
design/permitting firm and a construction company. Plaintiff was suing for $792 million. Following
issuance of report, client’s insurance company settled for $1.3 million.
Coal Mine Permitting and Compliance, Stark County, OH – Project Director and Manager for a several
hundred acre new coal and industrial mineral mine in Northeast Ohio. Project work included wetland
permitting and mitigation, mine planning, surface water controls, reclamation, air emissions, and mine
safety compliance and training.
Economic Valuation of Three Properties for Power Company, Northeast, OH – Project Director and
Manager for economic valuation of three properties owned by a power generation company ranging from
200 to over 1000 acres. Power company utilized the report for acquisition planning and management.
Superfund Remedial Action, Ashtabula, OH – Project Director for a portion of the source control for a
multibillion dollar chemical company. Work included regulatory negotiations, project planning, public
meetings and buy-in, logistics, environmental monitoring and oversight, and the execution of the remedial
action of 70,000 cubic yards of PCB, PAH, volatile, and radiological contaminated soil.
Surface Water Impoundment and Wetland Mitigation, Sandy Township, OH – Project Director, Manager,
and Engineer for a surface water impoundment that included dam design and permitting, hazard analysis,
wetland permitting and mitigation, archeological investigations, MSHA permitting, endangered species
analysis, stability analysis, and water quality certification. No fewer than eight different agencies or
divisions of agencies were required to issue approvals. All were received in less than 12-months.
Major Solid Waste Acquisition, Northeast OH – Managed the seller’s end of the due diligence of a $150
million sale of solid waste assets. This included environmental due diligence, permit transfers,
Department of Justice due diligence, personnel actions and transfers, and confidential information
management.
Value Engineering, Ashtabula, OH – Participated in two Value Engineering Committees with industrial
concerns, Ohio EPA, USEPA, and the US Army Corps of Engineers for the first 312(b) environmental
dredging project in the US. Found and developed ways of saving several million dollars on the $50
million dollar environmental dredging project and won the 2000 Environmental Service Award for efforts.
Wetland Wastewater Treatment Plant Design, Permitting, and Construction, New Springfield, OH –
Project Manager, Director, and Engineer for the first constructed wetland wastewater treatment system in
Ohio. Won USEPA’s National Wastewater Excellence Award.
Methane Extraction and Recovery System Design, Permitting, and Construction, Sandy Township, OH –
Project Director for one of the largest landfill methane extraction projects in the US. Gas was recovered
and used as an alternative to natural gas and coal.
Wastewater Recirculation, Ashtabula, OH – Project Manager for design, permitting, and construction of a
wastewater recirculation system for a national chemical company. Reduced wastewater treatment
requirement from operation by 15 percent.
Disposal Facility 100 percent Retrofit and Expansion Permitting, Northeast, OH – Project Director,
Manager, and Engineer for the redesign and re-permitting of two disposal facilities originally opened in
1960. Included stream relocations, hydrogeologic assessments, underground mine mitigation, hazard
analysis, waste relocation, and stability analysis.
STEPHEN G. KILPER, PE
Scrap Tire Disposal/Storage Facility, Sandy Township, OH – Project Director and Manager for the first
scrap tire monofill in Ohio. Project work included design, permitting, materials processing, wetland
delineation and avoidance, surface water and air emissions permitting, bid package and construction
specifications development, contracting, and quality control and assurance.
Scrap Tire Beneficial Use, Statewide, OH – Worked with Ohio EPA to develop the State’s first scrap tire
disposal and recycling regulations. Obtained three approvals for beneficial use/recycling of scrap tires
currently being used by dozens of facilities around the State.
Divestiture Management, Export, PA – Performed valuation, located qualified purchasers, and negotiated
sale of two analytical laboratories near Pittsburgh.
CERCLA and NRC Remedial Action, Cleveland, OH – Took over project management of a radiologically
contaminated site that was stalled due to poorly written specifications and site investigations. Rewrote and
obtained agency approval of specifications and work plan, suspending project loses and successfully
completed the remediation.
Construction Management, Northeast, OH – Project Director for approximately 100 acres of disposal
facility cell and cap construction including construction plans, agency approvals, specifications, contract
document preparation, quality assurance, and certification approvals. Project work valued in excess of
$25 million.
CERTIFICATIONS
Hazardous Site Operations Certifications
MSHA Impoundment Inspector Certification
Radiological Site Certification
LAWRENCE D. MALIZZI, P.G. geology
hydrogeology
project management
environmental assessments
business/client development
restoration/reclamation planning
EDUCATION
Rutgers University: M.S., Geology, 1989
Montclair State College: B.S., Geoscience, 1987
PROFESSIONAL HISTORY
ENTRIX, Inc., Assistant Vice President and General Manager, 1995 to Present
N.J. Army National Guard, Woodbury, NJ, Battalion Fire Support Officer (Captain), 1982 - present
Frederick C. Spott & Associates, Blakely, PA, Hydrogeologist/Project Manager, 1992 - 1995
Vectre Corporation, Lafayette, NJ, Project Geologist, 1991 - 1992
N.J. Army National Guard, Trenton, NJ, Active Duty Officer, 1990 - 1991
Toedter-Schofield, Inc., Whitehall, PA, Geologist, 1990 - 1990
REPRESENTATIVE EXPERIENCE
Mr. Malizzi has seven years of experience in geology and hydrogeology, including management of projects
involving groundwater contamination, hazardous and solid waste, RI/FS completion, and remediation. Specific
project experience includes:
x NRD applications to groundwater issues. Project management of sites where alternate restoration
approaches were used instead of invasive remediation to achieve site closure. Performed NEBA to
determine "best" remedial/restoration options.
x Surface mining permit preparation; mining reclamation planning/permitting; air quality permits; site
assessments; wetland delineation and permitting; underground storage tank management; erosion and
sedimentation control plans; soil and water sampling. Proposal development; time allocation; event
scheduling; and invoicing.
x Underground storage tank management; site assessments and remediation; groundwater investigation and
monitoring; RCRA closures; hazardous waste management; soil gas surveys; and Federal and State
permitting. 40-hour OSHA training and N.J. BUST certification.
x Preliminary site assessments and groundwater monitoring. Wrote an environmental regulation for the N.J.
Department of Military and Veterans Affairs facilities, to include underground storage tank management,
waste water permitting, and spill prevention/response.
x Percolation tests; soil sampling and analysis; septic system design; wetland delineation and permitting;
well installation and pump testing; B.O.C.A. inspection; and technical report writing. PA Sewage
Enforcement Officer (Lic. #02316).
Mr. Malizzi has assisted industrial, municipal, and government clients. In addition, he has written numerous
publications and technical reports and has participated in numerous public meetings. Representative experience
includes:
x Project manager for the removal of eight inground hydraulic lifts at an automotive service center in Bergen
County, New Jersey. Tasks included: excavation oversight, soil testing, soil disposal, hydraulic oil
disposal, construction management, regulatory interface, and report preparation.
LAWRENCE D. MALIZZI, P.G.
x Remedial alternatives analysis advisor to a PRP group in Burlington County, New Jersey. The site is an
old landfill with groundwater contamination which is being remediated under CERCLA. Provided report
and data review and structured the analysis into a net environmental benefits framework.
x Project manager for a used motor oil UST in Baltimore County, Maryland, at an automotive body shop.
Tasks included: excavation oversight, soil testing, soil disposal, used motor oil disposal, and regulatory
interface/reporting.
x Project task manager for the development of restoration options at a petroleum spill site in Allegheny
County, Pennsylvania. Designed various restoration options to compensate the public for lost use caused
by a pipeline failure. Provided restoration plan for possible presentation to PADEP.
x Project manager for various Phase I environmental site assessments throughout the East Coast at
automotive dealership facilities. Identified potential impacts to land, air, and ground/surface water, and
recommended remediation options to mitigate areas of environmental concern.
x Project manager for the completion of surface coal mining permits in Luzerne and Lackawanna counties,
Pennsylvania. Identified coal reserves utilized as fuel in co-generation facilities. Provided regulatory
interface and conducted field activities in support of the permitting process.
x Project manager for studies assessing acid mine drainage in Luzerne, Carbon, and Lackawanna counties in
Pennsylvania. Established baseline pollution load on surface waters by detailed sampling of underground
mine and culm pile discharge points. Developed acid mine drainage treatment plans.
x Project task manager for groundwater studies at international airports in Greensboro, North Carolina and
Newark, New Jersey. Identified extent of impacted groundwater caused by leaking USTs. Provided
technical reports and regulation interface to close sites.
x Project manager for permitting sites in Luzerne County, Pennsylvania to receive coal ash. Tasks included:
site mapping, groundwater monitoring, permit preparation, regulatory interface, coal ash testing, and
reclamation design (regrading and revegetation).
x Project sponsor for major automotive company. Provided environmental consulting services to client
during litigation over site remediation, managed field scientists during the collection of samples and report
preparation, and provided technical information interpretation to attorneys during preparation of legal
documents.
AFFILIATIONS
National Water Well Association
Delaware State Chamber of Commerce
PUBLICATIONS
Gates, A.E., Gundersen, L.C.S., and Malizzi, L.D. 1989. Case Studies of Anomalous Radon in Soils Over
Shear Zones (VA and NJ). EOS-Transactions of the American Geophysical Union 70: 499.
Gates, A.E., Malizzi, L.D., and Driscoll, J. 1993. Soil Radon Distribution in Glaciated Areas: An Example
from the NJ Highlands. Geological Society of America Special Paper 271.
Malizzi, L.D. and Gates, A.E. 1989. A Positive Flower Structure in the New Jersey Highlands. American
Association of Petroleum Geologists Bull. (in review).
1989. An Alleghanian Positive Flower Structure in the New Jersey Highlands. EOS - Transactions of the
American Geophysical Union 70: 462.
LAWRENCE D. MALIZZI, P.G.
Rosmarin, S.G. and Malizzi, L. 1998. "How to Prepare for a Natural Resource Damage Claim."
Environmental Compliance & Litigation Strategy. Vol 13, No. 8, pp. 1-3.
Weberg, E., Batatian, D., Derr, D., Evans, J., Genovese, P., Harlan, S., Malizzi, L., McDonnell, R., Nelson, G.,
Parke, M., and Schimdt, C. 1990. Footwall Deformation Below the Scarface Thrust, Madison Range,
Southwestern Montana. Geological Society of America Abstracts with Programs.
CERTIFICATIONS/ REGISTRATIONS
New Jersey UST Certifications: Closure and Subsurface Evaluator
Registered Professional Geologist: Pennsylvania
Registered Professional Geologist: Delaware
OSHA 8-hour supervisory training
OSHA 40-hour hazardous waste operations training
ENTRIX, Inc.
10 Corporate Circle, Suite 100
New Castle, DE 19720
(302) 395-1919
(302) 395-1920 FAX
September 9, 2004

1725 The Fairway
Jenkintown, Pennsylvania 19046
And

399 Park Avenue
New York, New York 10022
RE: Phase II Letter Report

Mt. Carmel Office
ENTRIX Project No. 7070930
Dear Clients:
ENTRIX, Inc. (ENTRIX) is pleased to provide American Financial Realty Trust and Lehman
Brothers Holdings, Inc. (Clients) with this letter report regarding the removal and disposal of
a 25-gallon container of metal polish and approximately 50-gallons of rock salt from 50 and
51 West 3rd Street in the Borough of Mount Carmel, Northumberland County, Pennsylvania
(Subject Property). The findings of the Phase II Letter Report are presented below.
Attachments to this report include: Lehman Brothers Holdings Inc. Reliance Language and
Acknowledgment (Attachment A); and a letter of documentation from Curren
Environmental, Inc. (Curren), of Westmont, New Jersey, dated August 4, 2004 (Attachment
B).
OBJECTIVE
The objective of this Phase II Letter Report is to inform the Clients of the removal and
disposal of a 25-gallon container of metal polish and approximately 50-gallons of rock salt
from the Subject Property, located at the Mt. Carmel Office branch building, 50 & 51 West
3rd Street, on August 5, 2004 by Curren Environmental.
Phase II Letter Report
Mt. Carmel Office
Mt. Carmel, Pennsylvania
Page 2 of 3
TERMS AND CONDITIONS

The findings and conclusions of this report are not scientific certainties, but rather,
probabilities based on professional judgment concerning the significance of the data gathered
during the course of the assessment. ENTRIX is not able to verify that the sites or adjoining
land contains no hazardous substances, petroleum products, or other latent conditions beyond
that detected or observed during the assessment. The possibility always exists for
contaminants to migrate through surface water, air, soil, or groundwater. The ability to
accurately address the environmental risks associated with transport in these media is beyond
the scope of this assessment. The opinions expressed by ENTRIX with reference to the
Subject Property only pertain to the conditions that existed at the sites during the time in
which the site inspection was conducted and the information supplied for review. No
guarantees or warranties are either expressed or implied.
The scope of the Phase II ESA was limited by project budget constraints, and the review of a
letter of removal by Curren.
Lehman Brothers Holdings Inc. Reliance Language and Acknowledgment (Attachment A).
SITE DESCRIPTION
Location
The Subject Property consists of a three-story, 14,000 square foot building constructed in the
1920’s, and a motor bank located across West 3rd Street including a building of
approximately 420 square feet. The building is occupied by Wachovia Bank. The area in the
immediate vicinity of the properties includes a gas station and mini-mart, residential
properties, and commercial shops.
Subject Property Use

The main bank building is utilized as a commercial bank branch and was built between 1913
and 1920 as a bank building. The first floor includes the bank lobby and offices, while the
second floor is used as a training center. The third floor is vacant with an unfinished
renovation. The motor bank is located across West 3rd Street from the main building and
includes the motor bank and an asphalt parking lot. The motor bank was constructed
between 1978 and 1980.
Phase II Letter Report
Mt. Carmel Office
Mt. Carmel, Pennsylvania
Page 3 of 3
Recognized Environmental Problem
According to the previously completed Phase I ESA,1 a wood-slatted barrel was found in a
room in the western portion of the basement, containing greenish-white crystalline particles
of approximately one-inch irregular shapes. The barrel was open and the northern side of the
barrel was rotted through. A whitish residue was on the floor around the barrel suggesting
the particles dissolved. Additionally, near the center of the basement, a 20 to 30 gallon steel
container was found labeled “metal polish”. The container had no further information
regarding its contents and appeared to be full. The container was somewhat rusty; however
no leaks were observed.
CONCLUSIONS
Based on the a letter to MACTEC Engineering & Consulting, Inc., from Curren, a 25-gallon
container of metal polish and approximately 50-gallons of rock salt were removed from the
Subject Property on August 4, 2004, and are currently being stored at Curren’s storage yard.
The containers formerly located on the Subject Property are not likely to have
environmentally impacted the Subject Property. Therefore, no further investigation is
recommeded at this time. The letter of documentation from Curren is included in Attachment
B.
If you have any questions regarding this report, then please do not hesitate to contact us.
Sincerely,
Mark T. Hart Neil Chandler

Staff Scientist Project Scientist
Attachment A – Lehman Brothers Holdings Inc. Reliance Language and Acknowledgment
Attachment B – Documentation letter from Curren
1
ENTRIX, Inc., June 2004. Phase I Environmental Site Assessment, Mount Carmel Office, 50&51 West 3rd
Street, Mount Carmel, Pennsylvania.
ATTACHMENT A
Lehman Brothers Holdings Inc. Reliance Language and Acknowledgment
LEHMAN BROTHERS HOLDINGS INC.
Reliance Language and Acknowledgment
This Report has been prepared to assist in the determination of whether to make a loan
evidenced by a note (the “Mortgage Note”) secured by the property referred to in the
Report. This Report may be relied upon by: (i) Lehman Brothers Holdings Inc.
(“Lehman”); (ii) the trustee of a trust created in connection with a securitization which
includes the Mortgage Note or an interest therein; and (iii) any other purchaser or
assignee of the Mortgage Note or an interest therein, upon such purchaser’s or assignee’s
written acceptance of and consent to the terms of this reliance letter. This Report may be,
for informational purposes only: (i) provided to any potential purchaser or assignee of the
Mortgage Note or an interest therein; (ii) provided to any rating agency, rating securities
which represent a beneficial ownership interest in a trust fund that consists of mortgage
loans including the Mortgage Note or an interest therein; and (iii) referred to, quoted in
or included with materials offering for sale the Mortgage Note or an interest therein.
There are no third party beneficiaries (intended or unintended) to this Report, except as
expressly stated herein. This Report speaks only as of its date.
We have performed our services and prepared this Report in accordance with applicable,
generally accepted engineering, environmental or appraisal consulting practices. We
make no other warranties, either expressed or implied, as to the character and nature of
such services and product.
ENTRIX, Inc.
Neil Chandler
Project Scientist
ATTACHMENT B
Documentation Letter from Curren
P ROPERTY C ONDITION
ASSESSMENT
LEHMAN BROTHERS BANK, FSB
New York, New York 10022
PROPERTY CONDITION ASSESSMENT

of
WACHOVIA-MOUNT CARMEL
50 West 3rd Street
Mount Carmel, Northumberland County, Pennsylvania 17851
Site ID No.: 107
PREPARED BY: REVIEWED BY:

EMG Cary Hendrix
11011 McCormick Road Technical Relationship Manager
Hunt Valley, Maryland 21031 800.733.0660, x7547
800.733.0660 cbhendrix@emgcorp.com
410.785.6220 (fax)
www.emgcorp.com
EMG Project #: 122236

Date of Report: December 2, 2004
On site Date: October 5, 2004
DUE DILIGENCE FOR THE LIFE CYCLE OF REAL ESTATE

A N ISO 9001 C E R T I F I E D C O M P A N Y • www.emgcorp.com
PROPERTY CONDITION
A S S E S S M E N T
122236
TABLE OF CONTENTS
1. Executive Summary....................................................................................................... 1
1.1. Summary of Findings................................................................................................ 1
1.2. Follow Up Recommendations .................................................................................... 1
1.3. Opinions of Probable Cost ......................................................................................... 2
1.3.1. Methodology ......................................................................................................... 2
1.3.2. Immediate Repairs ................................................................................................. 2
1.3.3. Modified Capital Reserves...................................................................................... 2
2. Purpose and Scope ........................................................................................................ 6
2.1. Purpose.................................................................................................................... 6
2.2. Deviations from Guide (ASTM E2018-01) ................................................................. 6
2.3. Additional Scope Considerations................................................................................ 7
2.4. Property’s Remaining Useful Life Estimate ................................................................ 7
2.5. Personnel Interviewed ............................................................................................... 8
2.6. Documentation Reviewed.......................................................................................... 8
2.7. Pre-Survey Questionnaire .......................................................................................... 8
2.8. Weather Conditions .................................................................................................. 8
3. Code Information and Accessibility ............................................................................... 9
3.1. Code Information, Flood Zone and Seismic Zone ........................................................ 9
3.2. ADA Accessibility.................................................................................................... 9
3.3. Mold...................................................................................................................... 10
4. Existing Building Evaluation ....................................................................................... 11
4.1. Tenant Unit Types .................................................................................................. 11
4.2. Areas Observed ...................................................................................................... 11
5. Site Improvements....................................................................................................... 12
5.1. Utilities.................................................................................................................. 12
5.2. Parking, Paving, and Sidewalks ............................................................................... 12
5.3. Drainage Systems and Erosion Control ..................................................................... 12
5.4. Topography and Landscaping .................................................................................. 13
5.5. General Site Improvements...................................................................................... 13
6. Building Architectural and Structural Systems............................................................ 14
6.1. Foundations............................................................................................................ 14
6.2. Superstructure ........................................................................................................ 14
6.3. Roofing.................................................................................................................. 15
6.4. Exterior Walls ........................................................................................................ 15
6.5. Exterior and Interior Stairs....................................................................................... 16
6.6. Windows and Doors................................................................................................ 16
6.7. Patio, Terrace, and Balcony ..................................................................................... 16
6.8. Common Areas, Entrances, and Corridors................................................................. 16
7. Building Mechanical and Electrical Systems................................................................ 17
7.1. Building Heating, Ventilating, and Air-conditioning (HVAC) .................................... 17
7.2. Building Plumbing.................................................................................................. 17
7.3. Building Gas Distribution........................................................................................ 17
7.4. Building Electrical .................................................................................................. 17
7.5. Building Elevators and Conveying Systems .............................................................. 18
7.6. Fire Protection Systems........................................................................................... 18
DUE DILIGENCE FOR THE LIFE CYCLE OF REAL ESTATE.

800.733.0660 • www.emgcorp.com
PROPERTY CONDITION
A S S E S S M E N T
122236
8. Interiors ...................................................................................................................... 19
8.1. Interior Finishes...................................................................................................... 19
8.2. Commercial Kitchen Equipment .............................................................................. 19
8.3. HVAC ................................................................................................................... 20
8.4. Plumbing ............................................................................................................... 20
8.5. Electrical................................................................................................................ 20
9. Other Structures ......................................................................................................... 22
10. Certification ................................................................................................................ 23
11. Appendices .................................................................................................................. 25

Project at a Glance
Wachovia-Mount Carmel
Mount Carmel, Pennsylvania Office Building
October 5, 2004 Square Footage: 12,182
EMG Project No. 122236 Building Age: 39
Immediate Replacement
Physical Condition Summary Good Fair Poor Action Repairs Reserves
Executive Summary
1.2 Follow-Up Recommendations Additional evaluation $7,500 $0
Code Information and Accessibility
3.1 Building, Zoning, and Fire Code Information 3 $0 $0
3.2 Accessibility 3 See Section 3.2 $220 $0
3.3 Mold 3 See Section 3.3 $0 $0
Site Improvements
5.1 Utilities 3 $0 $0
5.2 Parking, Paving and Sidewalks 3 Seal, repair $0 $1,000
5.3 Storm Sewer, Drainage Systems & Erosion Control 3 $0 $0
5.4 Landscaping and Topography 3 $0 $0
5.5 General Site Improvements 3 $0 $0
Building Architectural & Structural Systems
6.1 Foundations 3 $1,500 $0
6.2 Superstructure and Floors 3 3 See Section 1.2 $0 $3,000
6.3 Roofing 3 Replace over term $0 $7,000
6.4 Exterior Walls 3 Repair over term $0 $1,950
6.5 Exterior and Interior Stairs 3 $0 $0
6.6 Exterior Windows and Doors 3 $0 $0
6.7 Patio, Terrace and Balcony Not Applicable $0 $0
6.8 Common Areas, Entrances and Corridors Not Applicable $0 $0
Building Mechanical and Electrical Systems
7.1 Building Heating, Ventilating, and Air-Conditioning Not applicable $0 $0
7.2 Building Plumbing and Domestic Hot Water 3 $0 $0
7.3 Building Gas Distribution 3 $0 $0
7.4 Building Electrical 3 $0 $0
7.5 Building Elevators and Conveying Systems 3 Replace over term $0 $10,000
7.6 Fire Protection 3 Replace over term $0 $2,000
Tenant Units
8.1 Interior Finishes 3 Tenant responsibility $0 $0
8.2 Commercial Kitchen Appliances Not Applicable $0 $0
8.3 HVAC 3 By tenant $0 $0
8.4 Plumbing 3 $0 $0
8.5 Electrical 3 $0 $0
Other Structures
9.0 Drive thru 3 $0 $0
Totals $9,220 $24,950
Summary
Today's Dollars $/SF
Immediate Repairs $9,220 $0.76
Total Dollars $/SF $/SF/Year

Replacement Reserves, today's dollars $0 $0.00 $0.00
Replacement Reserves, w/ 9-year, 2.5% escalation $27,125 $2.23 $0.25
EMG 122236 tables2.xls 12/10/2004

PROPERTY CONDITION
A S S E S S M E N T
122236
1. EXECUTIVE SUMMARY
1.1. SUMMARY OF FINDINGS
The Client contracted with EMG to conduct a Property Condition Assessment (PCA) in order to prepare a Property
Condition Report (PCR) of the subject property, Wachovia-Mount Carmel, located at 50 West 3rd Street in Mount
Carmel, Northumberland County, Pennsylvania. The PCA was performed on October 5, 2004.
Property Summary
Item Description
Property Type Bank
Drive-through Yes
Number of Buildings One
Number of Floors Three
Number of Tenant Units One
Floor Area 12,182 SF
Site Area 0.38 acres
Construction Date 1965
Construction Quality Good
Maintenance Practices Fair
Overall Condition Good to poor
Recent Capital Improvements Replaced rooftop unit.
There are a number of immediate repairs and modified capital reserve costs recommended over the evaluation
period. These needs are identified in the various sections of this report and are summarized in the attached cost
tables. A Project at a Glance summary table is provided as part of the Executive Summary.
According to property management personnel, all interior components relating to the tenant space, including the
roof, exterior walls, the parking lot, and related facilities are the responsibility of the tenant to maintain, repair, or
replace at the tenant’s own expense. This responsibility also extends to any exterior mechanical, electrical, or
plumbing equipment that services the tenant space, such as rooftop HVAC units and wall-mounted electrical
equipment.
1.2. FOLLOW UP RECOMMENDATIONS
The following issue requires additional study:

There is a sagging roof beam on the north side of the building. It is recommended that an engineering
professional be retained to analyze the existing condition, provide recommendations and, if necessary, estimate
the scope and cost of any recommended repairs. The cost to retain an engineering professional is included in the
Immediate Repairs Cost Estimate (Table 1). The cost for any possible subsequent repairs cannot be determined
until the additional evaluation is performed; therefore, no costs are included in the cost tables.

1
PROPERTY CONDITION
A S S E S S M E N T
122236
1.3. OPINIONS OF PROBABLE COST
This section provides estimates for the repair and capital reserves items noted within this PCR.
These estimates are based on invoice or bid documents provided either by the Owner/facility and construction costs
developed by construction resources such as R.S. Means and Marshall & Swift, EMG’s experience with past costs
for similar properties, city cost indexes, and assumptions regarding future economic conditions.
1.3.1. Methodology
Based upon site observations, research, and judgment, along with referencing Expected Useful Life (EUL) tables
from various industry sources, EMG opines as to when a system or component will most probably necessitate
replacement. Accurate historical replacement records, if provided, are typically the best source of information.
Exposure to the elements, initial quality and installation, extent of use, the quality and amount of preventive
maintenance exercised, etc., are all factors that impact the effective age of a system or component. As a result, a
system or component may have an effective age that is greater or less than its actual chronological age. The
Remaining Useful Life (RUL) of a component or system equals the EUL less its effective age.
Where quantities could not be derived from an actual take-off, lump sum costs or allowances are used. Estimated
costs are based on professional judgment and the probable or actual extent of the observed defect, inclusive of the
cost to design, procure, construct and manage the corrections.
1.3.2. Immediate Repairs
Immediate repairs are opinions of probable costs that require immediate action as a result of: (1) material existing or
potential unsafe conditions, (2) material building or fire code violations, or (3) conditions that, if left unremedied,
have the potential to result in or contribute to critical element or system failure within one year or will most
probably result in a significant escalation of its remedial cost.
1.3.3. Modified Capital Reserves
Modified Capital Reserves are for recurring probable expenditures that are not classified as operation or
maintenance expenses. The modified capital reserves should be budgeted for in advance on an annual basis. Capital
reserves are reasonably predictable both in terms of frequency and cost. However, capital reserves may also include
components or systems that have an indeterminable life but nonetheless have a potential liability for failure within
an estimated time period.
Modified Capital Reserves exclude systems or components that are estimated to expire after the reserve term and
that are not considered material to the structural and mechanical integrity of the subject property. Furthermore,
systems and components that are not deemed to have a material effect on the use are also excluded. Costs that are
caused by acts of God, accidents, or other occurrences that are typically covered by insurance, rather than reserved
for, are also excluded.
Replacement costs are solicited from ownership/property management, EMG’s discussions with service companies,
manufacturers' representatives, and previous experience in preparing such schedules for other similar facilities.
Costs for work performed by the ownership’s or property management’s maintenance staff are also considered.

2
PROPERTY CONDITION
A S S E S S M E N T
122236
EMG’s reserve methodology involves identification and quantification of those systems or components requiring
capital reserve funds within the evaluation period. The evaluation period is defined as the effective age plus the
reserve term. Additional information concerning system’s or component’s respective replacement costs (in today's
dollars), typical expected useful lives, and remaining useful lives were estimated so that a funding schedule could be
prepared. The Modified Capital Reserves Schedule presupposes that all recommended remedial work has been
performed or that monies for remediation have been budgeted for items defined in the Immediate Repairs Cost
Estimate.

3
Immediate Repairs Cost Estimate
Property Name: Wachovia-Mount Carmel Square Footage: 12,182
Location: Mount Carmel, Pennsylvania Number Buildings: 1
EMG Project Number: 122236 Reserve Term /Years: 9
Building Age /Years: 39
Immediate
Sec Component or System Comments Quantity Unit Unit Cost
Total $
Num Description Comments Quantity U Unit Cost Immediate
1.2 Engineering professional - review and report Structural engineer to investigate roof beam 1 LS $7,500.00 $7,500
3.2 ADA Accessibility Itemized costs are provided in Section 3.2 of the report. 1 LS $220.00 $220
6.1 Replace seals 1 LS $1,500.00 $1,500
Total Repair Cost $9,220
Cost per Square Foot $0.76
EMG Filename: 122236 tables2.xls Table 1 12/10/2004

Modified Capital Reserves Schedule
Property Name: Wachovia-Mount Carmel Reserve Term: 9 years
Location: Mount Carmel, Pennsylvania Building Age: 39 years
EMG Project Number: 122236 Number Buildings: 1
CPI Factor: 2.50% Square Footage: 12,182
EFF Cycle Replace Probable Replacement Dates & Estimated Expenditures ($) Total
Sec. Component or System EUL AGE RUL Quantity Unit $ Cost Replacement Percent Year Year Year Year Year Year Year Year Year Reserves
1 2 3 4 5 6 7 8 9 Over Term
5.2 Asphalt pavement. Full depth repair. 25 24 1 400 SF $2.50 $1,000 100% $1,000 $0 $0 $0 $0 $0 $0 $0 $0 CHECK YOUR NUMBERS
6.2 Floor repairs 50 49 1 500 SF $6.00 $3,000 100% $3,000 $0 $0 $0 $0 $0 $0 $0 $0 CHECK YOUR NUMBERS
6.3 Single-ply rubber roof, replace 20 15 5 40 SQ $175.00 $7,000 100% $0 $0 $0 $0 $7,000 $0 $0 $0 $0 CHECK YOUR NUMBERS
6.4 Exterior walls. Paint. 10 5 5 3,000 SF $0.65 $1,950 100% $0 $0 $0 $0 $1,950 $0 $0 $0 $0 CHECK YOUR NUMBERS
7.5 Elevator. Controller/dispatcher 15 10 5 1 EA $10,000.00 $10,000 100% $0 $0 $0 $0 $10,000 $0 $0 $0 $0 CHECK YOUR NUMBERS
7.6 Central alarm panel 15 10 5 1 EA $2,000.00 $2,000 100% $0 $0 $0 $0 $2,000 $0 $0 $0 $0 CHECK YOUR NUMBERS
CORRECT
CORRECT
CORRECT
CORRECT
CORRECT
CORRECT
CORRECT
CORRECT
CORRECT
CORRECT
CORRECT
CORRECT
CORRECT
CORRECT
CORRECT
CORRECT
CORRECT
CORRECT
CORRECT
CORRECT
CORRECT
CORRECT
CORRECT
CORRECT
CORRECT
CORRECT
CORRECT
CORRECT
CORRECT
CORRECT
CORRECT
CORRECT
CORRECT
CORRECT
ANNUAL RESERVE (UNINFLATED) $4,000 $0 $0 $0 $20,950 $0 $0 $0 $0 $0 CHECK YOUR NUMBERS

EUL = Expected Useful Life (Average) INFLATION RATE FACTOR 1.0000 1.0250 1.0506 1.0769 1.1038 1.1314 1.1597 1.1887 1.2184
EFF = Effective Age of Building Components ANNUAL RESERVE (INFLATED) 2.50% $4,000 $0 $0 $0 $23,125 $0 $0 $0 $0 $27,125
RUL = Remaining Useful Life (Estimated) RESERVE / SQUARE FOOT / YEAR $0.00
INFLATED RESERVE / SQUARE FOOT / YEAR $0.25
EMG Filename: 122236 tables2.xls Table 2 12/10/2004

PROPERTY CONDITION
A S S E S S M E N T
122236
2. PURPOSE AND SCOPE
2.1. PURPOSE
The purpose of this report is to assist the Client in evaluating the physical aspects of this property and how its
condition may affect the Client’s financial decisions over time. For this PCA, representative samples of the major
independent building components were observed and their physical conditions were evaluated in accordance with
ASTM E2018-01. These components include the site and building exteriors, representative interior areas, and the
interior of the building. The estimated cost for repairs and/or capital reserve items are included in the cost estimates
presented in the previous section. All findings relating to these opinions of probable costs are included in the
relevant narrative sections of this Report.
The property management staff and code enforcement agencies were interviewed for specific information relating to
the physical property, code compliance, available maintenance procedures, available drawings, and other
documentation.
The physical condition of building systems and related components is typically defined as being in one of three
conditions: Good, Fair, or Poor. For the purposes of this Report, the following definitions are used:
Good = Satisfactory as-is. Requires only routine maintenance during the evaluation period. Repair or
replacement may be required due to a system’s estimated useful life.
Fair = Satisfactory as-is. Repair or replacement is required due to current physical condition and/or
estimated remaining useful life.
Poor = Immediate repair, replacement, or significant maintenance is required.
Each building system or component is further identified with the following references if costs or other actions are
applicable:
RM = Routine maintenance
IR = Immediate Repair recommended
RR = Replacement Reserve cost recommended during the evaluation term
N/A = Not applicable.
2.2. DEVIATIONS FROM GUIDE (ASTM E2018-01)
ASTM E2018-01 requires that any deviations from the Guide be so stated within the report. EMG’s probable cost
threshold limitation is reduced from the Guide’s $3,000 to $1,000, thus allowing for a more comprehensive
assessment on smaller scale properties. Therefore, EMG’s opinions of probable costs that are individually less than
a threshold amount of $1,000 are typically omitted from this PCR. Comments and estimated costs regarding
identified deficiencies relating to life, safety or accessibility items are included regardless of this cost threshold.
In lieu of providing written record of communication forms, personnel interviewed from the facility and government
agencies are identified in Section 2.5. Relevant information based on these interviews is included in Sections 2.5. ,
3.1. , and other applicable report sections.

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2.3. ADDITIONAL SCOPE CONSIDERATIONS
Items required by ASTM E2018-01 are included within the Property Condition Assessment (PCA) and the
associated Property Condition Report (PCR). Additional “non-scope” considerations were addressed as part of
EMG’s PCA/PCR. These additional items are identified as follows:
PCA may be performed by a Professional Engineer, Registered Architect
PCR may be reviewed by a Professional Engineer or a Registered Architect other than the Field Observer
Property disclosure information is obtained from EMG’s Pre-Survey Questionnaire (copy included in the
Appendices of this Report)
A limited visual assessment for ADA accessibility utilizing EMG’s Accessibility Checklist (copy included in the
Appendices of this Report)
A limited visual assessment and review of the property for mold growth, conditions conducive to mold growth,
and evidence of moisture in accessible areas of the property
Preparation of the Modified Capital Reserves Schedule based upon a reserve term provided by the Client
Provide a statement on the property’s Remaining Useful Life
Provide cross-reference indexing between cost tables and report text
Provide Project At a Glance summary table
Determination of Federal Emergency Management Agency (FEMA) Flood Plain Zone for single address
properties
Determination of geographic Uniform Building Code Seismic Zone
2.4. PROPERTY’S REMAINING USEFUL LIFE ESTIMATE
Subject to the qualifications stated in this paragraph and elsewhere in this report, the Remaining Useful Life (RUL)
of the property is estimated to be not less than 35 years. The Remaining Useful Life estimate is an expression of a
professional opinion and is not a guarantee or warranty, expressed or implied. This estimate is based upon the
observed physical condition of the property at the time of EMG’s visit and is subject to the possible effect of
concealed conditions or the occurrence of extraordinary events such as natural disasters or other “acts of God” that
may occur subsequent to the date of EMG’s site visit.
The Remaining Useful Life for the property is further based on the assumption that: (a) the immediate and future
repairs for which replacement reserve funds are recommended are completed in a timely and workman-like manner,
and (b) a comprehensive program of preventive and remedial property maintenance is continuously implemented
using an acceptable standard of care. The Remaining Useful Life estimate is made only with regard to the expected
physical or structural integrity of the improvements on the property, and no opinion regarding economic or market
conditions, the present or future appraised value of the property, or its present or future economic utility, is
expressed by EMG.

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2.5. PERSONNEL INTERVIEWED
The following personnel from the facility and government agencies were interviewed in the process of conducting
the PCA:
Name and Title Organization Phone Number
Mr. Ron Nein

Wachovia (610) 655-1607
Property Manager
Mr. Joseph Bass
Mount Carmel (570) 339-4486
Borough Manager
The PCA was performed with the assistance of Mr. Ron Nein, Property Manager, Wachovia, the on site Point of
Contact (POC), who was cooperative and provided information, which appeared to be accurate based upon
subsequent site observations. The on site contact is not knowledgeable about the subject property but answered
most questions posed during the interview process. The POC’s management involvement at the property has been
for the past one week. This was the POC’s first visit to the site.
2.6. DOCUMENTATION REVIEWED
Prior to the PCA, relevant documentation was requested that could aid in the knowledge of the subject property’s
physical improvements, extent and type of use, and/or assist in identifying material discrepancies between reported
information and observed conditions. The review of submitted documents does not include comment on the
accuracy of such documents or their preparation, methodology, or protocol.
No documents were available for review. The Documentation Request Form is included in the Appendix.
2.7. PRE-SURVEY QUESTIONNAIRE
A Pre-Survey Questionnaire was sent to the POC prior to the site visit. The questionnaire is included in the
appendices of this report, after EMG’s Accessibility Checklist. Information obtained from the questionnaire has
been used in the preparation of this PCR.
2.8. WEATHER CONDITIONS
Weather conditions at the time of the site visit were clear, with temperatures in the 60’s (°F), and light winds.

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3. CODE INFORMATION AND ACCESSIBILITY
3.1. CODE INFORMATION, FLOOD ZONE AND SEISMIC ZONE
According to Mr. Joseph Bass of the Mount Carmel Building Department, there are no outstanding building code
violations on file. The Building Department does not have an annual inspection program. They only inspect new
construction, work that requires a building permit, and citizen complaints. A copy of the original Certificate of
Occupancy was requested, but was not available.
A review of the zoning classification information at the Mount Carmel Planning Department indicates that the
property is located within a C-2, Central Commercial zoning district and is a non-conforming, legal use.
Mount Carmel Fire Department personnel were not available to provide code compliance information. This
information has been requested through submission of a written request under the Freedom of Information Act
(FOIA). A copy of the request is included in Appendix C. Significant information will be forwarded upon receipt.
According to the Flood Insurance Rate Map, published by the Federal Emergency Management Agency (FEMA)
and dated June 19, 1985 the property is located in Zone C, defined as an area outside the 500-year flood plain with
less than 0.2% annual probability of flooding. Annual Probability of Flooding of Less than one percent.
According to the 1997 Uniform Building Code Seismic Zone Map of the United States, the property is located in
Seismic Zone 2A, defined as an area of low to moderate probability of damaging ground motion.
3.2. ADA ACCESSIBILITY
Generally, Title III of the Americans with Disabilities Act (ADA) prohibits discrimination by entities to access and
use of “areas of public accommodations” and “commercial facilities” on the basis of disability. Regardless of its
age, these areas and facilities must be maintained and operated to comply with the Americans with Disabilities Act
Accessibility Guidelines (ADAAG).
Buildings completed and occupied after January 26, 1992 are required to comply fully with the ADAAG. Facilities
constructed prior to this date are held to the lesser standard of compliance to the extent allowed by structural
feasibility and the financial resources available. As an alternative, a reasonable accommodation pertaining to the
deficiency must be made.
During the PCA, a limited visual observation for ADA accessibility compliance was conducted. The scope of the
visual observation was limited to those areas set forth in EMG’s Accessibility Checklist provided in Appendix D of
this report. It is understood by the Client that the limited observations described herein does not comprise a full
ADA Compliance Survey, and that such a survey is beyond the scope of EMG’s undertaking. Only a representative
sample of areas was observed and, other than as shown on the Accessibility Checklist, actual measurements were
not taken to verify compliance.
At a bank property, the areas considered as public accommodation are the site itself, parking, the exterior accessible
route up to the building entrance, any interior route up to the tenant entrance, the interior, and the common area
restrooms.

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The facility does not appear to be accessible with Title III of the Americans with Disabilities Act. Elements as
defined by the ADAAG that are not accessible as stated within the priorities of Title III are as follows:
Parking
Adequate number of designated handicapped-accessible parking stalls and signage for vans is not provided.
(ADAAG Section 4.1.2.5b)
Estimated Cost: 1 @ $220 each = ...................................................................................................................... $220
A full ADA Compliance Survey may reveal additional aspects of the property that are not in compliance.
Corrections of these conditions should be addressed from a liability standpoint, but are not necessarily code
violations. The Americans with Disabilities Act Accessibility Guidelines concern civil rights issues as they pertain
to the disabled and are not a construction code, although many local jurisdictions have adopted the Guidelines as
such. The cost to address the achievable items noted above is $220 and is included as a lump sum in the Immediate
Repairs Cost Estimate (Table 1).
3.3. MOLD
As part of the PCA, EMG completed a limited, visual assessment for the presence of visible mold growth,
conditions conducive to mold growth, or evidence of moisture in readily accessible areas of the property. EMG
interviewed property personnel concerning any known or suspected mold contamination, water infiltration, or
mildew-like odor problems.
This assessment does not constitute a comprehensive mold survey of the property. The reported observations and
conclusions are based solely on interviews with property personnel and conditions observed in readily accessible
areas of the property at the time of the assessment. Sampling was not conducted as part of the assessment.
EMG observed the presence of visible, suspect mold growth, and water damage in the areas cited below:
The elevator equipment room in the basement.
Remediation can be conducted by properly trained building maintenance staff. In addition, the source of this
moisture should be addressed in order to prevent future mold problems. The estimated costs of corrective action are
of a minimal quantity, and consequently, are considered to be part of routine maintenance operations. No other
costs are included in the tables.

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4. EXISTING BUILDING EVALUATION
4.1. TENANT UNIT TYPES

The following table identifies the reported tenant unit types and tenant mix at the subject property.
Tenant Unit Types and Mix

Quantity Type Floor Area
1 Bank 3,622 SF
1 Vacant Office 8,560 SF
There is currently one vacant unit.
There are currently zero down units.
2 TOTAL 12,182 SF
4.2. AREAS OBSERVED
The entire interior of the building was observed in order to gain a clear understanding of the property’s overall
condition. Other areas accessed included the exterior of the property and the roof.
Tenant Units Observed

Unit # Name Comments
Wachovia Bank Occupied. Good condition.
Vacant Vacant. Fair to poor condition.
All areas of the property were available for observation during the site visit.
A “down unit” is a term used to describe an unusable area due to poor conditions such as fire damage, water
damage, missing equipment, damaged floor, wall or ceiling surfaces, or other significant deficiencies. According to
the POC, there are no down areas.

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5. SITE IMPROVEMENTS
5.1. UTILITIES
Site Utilities
Utility Supplier Action Condition
Sanitary sewer City of Mount Carmel RM Good
Storm sewer City of Mount Carmel RM Good
Domestic water APA RM Good
Electric service PP&L RM Good
Natural gas service Mount Carmel Gas. RM Good
Observations/Comments:
No repair costs are recommended. Routine maintenance is recommended during the evaluation period.
5.2. PARKING, PAVING, AND SIDEWALKS
Item Description Action Condition

Surface Lots
Parking and Paving 13 total parking stalls RR Good/Fair
Asphalt
Sidewalks, Curbs and Gutters Concrete RM Good
Site Access Two driveways into site from adjacent streets. RM Good
Observations and Comments:

The asphalt pavement is in good to fair condition. There are isolated areas of failure and deterioration, such as
alligator cracking and localized depressions. The damaged areas of paving must be cut and patched in order to
maintain the integrity of the overall pavement system. The estimated cost of this work is included in the Modified
Capital Reserves Schedule (Table 2).
In addition to the pavement repairs noted above, pothole patching, crack sealing, seal coating, and restriping of
the asphalt pavement will be required during the evaluation period to maximize the pavement life. The estimated
cost of this work is relatively insignificant and the work can be performed as part of the property management’s
routine maintenance program. The estimated cost of this work is not included in the cost tables.
5.3. DRAINAGE SYSTEMS AND EROSION CONTROL

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Drainage Systems and Erosion
Surface flow, swales, inlets, underground piping RM Good
Control

5.4. TOPOGRAPHY AND LANDSCAPING

Topography Relatively flat RM Good
Landscaping Trees and bushes RM Good
Irrigation By hand watering only RM Good
Adjacent Properties Commercial, retail RM Good
Retaining Walls Not applicable RM Good
5.5. GENERAL SITE IMPROVEMENTS

Signage Pylon sign, Building –mounted signs RM Good
Site Lighting Pole-mounted fixtures along adjacent public streets RM Good
Building Lighting Wall-mounted fixtures. Recessed soffit fixtures RM Good
Fencing Not applicable RM Good
Dumpsters Not applicable N/A N/A

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6. BUILDING ARCHITECTURAL AND STRUCTURAL

SYSTEMS
6.1. FOUNDATIONS

Floor Concrete slab-on-grade RM Good
Footings Concrete perimeter footings, Pad footings RM Good
Basement with perimeter CMU and brick masonry
Basements and Crawl Spaces RR Good/Fair
retaining and bearing walls.
The subterranean basement walls appeared to be in good to fair condition. There are isolated areas of water
seepage in the elevator equipment room. The flashing and sealants between this building and the adjacent
buildings should be replaced. The cost of this work is included in the Immediate Repairs Cost Estimate (Table 1).
6.2. SUPERSTRUCTURE

Brick masonry and CMU interior and exterior bearing
Walls RM Good
walls. Interior concrete and steel columns.
Wood joists with wood plank sheathing, Steel joists
Floors RM/RR Good/Poor
with concrete-topped steel decks
Wood beams and joists with wood plank and plywood
Roofs RR Good/Fair/Poor
sheathing. Steel decks supported by steel joists
The superstructure is exposed in some locations, allowing for limited observation. There is isolated evidence of
deflection and movement of a roof support beam on the north side of the building. An engineering professional
with specific expertise in structural design and construction in this geographical area must be retained to evaluate
the structure and to provide remedial recommendations consistent with local regulatory and code requirements.
The estimated cost to retain an engineering professional is included in the Immediate Repairs Cost Estimate
(Table 1) under Section 1.2. The cost of repair cannot be accurately determined without the recommended study.
The third floor flooring and sheathing is in fair to poor condition. There are significant areas of damaged and
missing flooring and sheathing. The damaged areas must be repair or replaced. A cost allowance for this work is
included in the Modified Capital Reserves Schedule (Table 2).

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6.3. ROOFING

Type Flat
Finish Single-ply membrane RR Good
Maintenance Maintained by outside contractor
Age The roof finishes are approximately 18 years old.
Information regarding roof warranties or bonds was not
Warranties
available.
Drainage Internal drains RM Good
Flashing Sheet metal RM Good
Insulation Rigid insulation RM Good
Parapet and Copings Parapets with sheet metal copings RM Good
Soffits, Eaves, and Fascias Concealed soffits RM Good
Skylights Not applicable. N/A N/A
Attics There are no attics N/A N/A
Ventilation Parapet wall vents RM Good
Other Not applicable N/A N/A
Based on the estimated Remaining Useful Life (RUL) and condition, roof membrane replacement is anticipated
during the evaluation period. The estimated cost of this work is included in the Modified Capital Reserves
Schedule (Table 2).
6.4. EXTERIOR WALLS

Stucco and stone veneer on the front elevations along
Typical Finishes and
West 3rd Street and North Maple Street. Stucco on RR Good
Cladding
other two sides.
Other finishes Not applicable N/A N/A
Caulking and sealants at joints, finish transitions, and
Sealants RM Good
at wall openings.
Based on the estimated Remaining Useful Life (RUL) and condition, exterior painting and sealant replacement
are anticipated during the evaluation period. The estimated cost of this work is included in the Modified Capital
Reserves Schedule (Table 2).

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6.5. EXTERIOR AND INTERIOR STAIRS

Exterior Stairs Not applicable N/A N/A
Steel framed stairs with precast treads and metal
Interior Stairs RM Good
balusters
6.6. WINDOWS AND DOORS

Windows Aluminum-framed units with fixed panes of glazing. RM Good
The doors are fully-glazed, aluminum-framed doors
Doors RM Good
set in the metal framing system.
Door Hardware Push-pull hardware, Deadbolts RM Good
Overhead Doors Not applicable N/A N/A
6.7. PATIO, TERRACE, AND BALCONY

Patios Not applicable N/A N/A
Balconies Not applicable N/A N/A
6.8. COMMON AREAS, ENTRANCES, AND CORRIDORS

Not applicable. There are no common areas.

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7. BUILDING MECHANICAL AND ELECTRICAL

SYSTEMS
7.1. BUILDING HEATING, VENTILATING, AND AIR-CONDITIONING (HVAC)
There are no interior common areas. See Section 8.3. for descriptions and comments regarding the HVAC systems.
7.2. BUILDING PLUMBING
There are no interior common areas. See Section 8.3. for descriptions and comments regarding the plumbing
systems.
7.3. BUILDING GAS DISTRIBUTION

Gas Meter and Regulator Located along rear elevation of building RM Good
Gas Distribution Piping Malleable steel (black iron). RM Good

The pressure and quantity of gas appear to be adequate.
The gas meters and regulators appear to be in good condition and will require routine maintenance during the
evaluation period.
Only limited observation of the gas distribution piping can be made due to hidden conditions. The gas piping is in
good condition and, according to the POC, there have been no gas leaks.
7.4. BUILDING ELECTRICAL
There are no interior common areas. See Section 8.3. for descriptions and comments regarding the electrical
systems.

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7.5. BUILDING ELEVATORS AND CONVEYING SYSTEMS

One hydraulic passenger elevator, 2,000 pound
Type and Quantity capacity. Manufactured by Ottos Elevator Company. RR Good
Installed in 1986
Maintenance Service contract with Ottis Elevator Company
Inspection Certificate Posted in cab; Expired on 4/30/03.
Equipment Located in room adjacent to shaft RM Good
Electric safety stops. Emergency communication
Other Devices RM Good
equipment
Carpeted floor, plastic laminated wood wall panels,
Elevator Cab Finishes RM Good
soffited ceiling with recessed light fixtures

The elevator appears to be in good condition. Based on its Remaining Useful Life (RUL), some machinery will
require replacement during the evaluation period. The cost of this work is included in the Modified Capital
Reserves Schedule (Table 2).
The elevator is inspected on an annual basis by the municipality, and a certificate of inspection is displayed in the
elevator cab. The inspection certificate has expired. It is common for inspections to occur behind schedule. A
new inspection should be scheduled as soon as possible.
7.6. FIRE PROTECTION SYSTEMS

Wet pipe, automatic sprinkler system with flow
Sprinkler Systems switches, pull stations, and alarm horns. Sprinklers N/A N/A
are located of the teller counter only
Central alarm panel, strobe light alarms, illuminated
Other Equipment and
exit signs, battery back-up light fixtures, hard-wired RR Good
Devices
smoke detectors
Special Systems Not applicable N/A N/A
Fire Extinguishers Located throughout interior spaces RM Good
Fire Hydrants Located along adjacent public streets N/A Good
Drywall-finish stairwell walls. Fire rated doors and
Stair Wells RM Good
door hardware

The central alarm panel appears to be more than ten years old. Based on the estimated Remaining Useful Life
(RUL), and because replacement parts and components for this type of equipment may be obsolete, the alarm
panel will require replacement during the evaluation period. The estimated cost of this work is included in the
Modified Capital Reserves Schedule (Table 2).

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8. INTERIORS
8.1. INTERIOR FINISHES
The following table generally describes the interior finishes:
Area Description Action Condition

Floor Walls Ceilings
Carpet, Suspended T-bar
Counter area/teller stations Painted drywall RM Good
Ceramic tile with tiles
Suspended T-bar
Offices Carpet Painted drywall RM Good/Poor
with tiles
Storage Unfinished Unfinished Unfinished RM Good/Fair
Vinyl tile,
Restrooms Painted drywall Painted drywall RM Good
Ceramic tile
Safe deposit box area Suspended T-bar
Carpet Painted drywall RM Good
with tiles
There are six teller stations, a vault, and a safe deposit box area. Security cameras are provided on the interior and
exterior of the building.
No repair costs are recommended.
Life (RUL), the carpet will require replacement during the evaluation period. Repair, replacement, maintenance,
or upgrading of the interior finishes in the tenant space is the responsibility of the tenant.
Interior painting and wall finish replacement will also be required. Based on the estimated Remaining Useful Life
(RUL), painting and wall finish replacement will require replacement during the evaluation period. Repair,
replacement, maintenance, or upgrading of the interior finishes in the tenant space is the responsibility of the
tenant.
The ceiling tiles are in good to fair condition. Based on the estimated Remaining Useful Life (RUL), the ceiling
tiles will require replacement during the evaluation period. Repair, replacement, maintenance, or upgrading of the
interior finishes in the tenant space is the responsibility of the tenant.
Significant areas of the third floor are in poor condition with significant areas of damaged floors, walls and
ceilings. Repair of these items will be required. Repair, replacement, maintenance, or upgrading of the interior
finishes in the tenant space is the responsibility of the tenant.
8.2. COMMERCIAL KITCHEN EQUIPMENT
Not applicable. There are no commercial kitchens.

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8.3. HVAC

Maintenance Maintained by an outside contractor
The HVAC equipment appears to vary in age. HVAC
Age and Type equipment is reportedly replaced on an "as needed"
basis.
Heating and Air- Gas-fired rooftop packaged unit. Central system with
RM Good
conditioning boiler
Refrigerant R-22
One rooftop packaged unit with a capacity of 35 tons.
Quantity/Capacity
One boiler with a capacity of 112,000 BTUH
Distribution Ducts from roof to spaces. Baseboard radiators RM Good
Controls Local thermostats RM Good
Ducts Concealed ducts above ceilings RM Good
Supplemental systems Not applicable N/A N/A
Ventilation Bathroom exhaust fans RM Good

The boiler appeared to be in good condition. Based on the estimated Remaining Useful Life (RUL), the boiler
will require replacement during the evaluation period Repair, replacement, maintenance, or upgrading of the
HVAC equipment in the tenant space is the responsibility of the tenant.
8.4. PLUMBING

Water Meter Meters in vaults along public street RM Good
Domestic Water Supply Copper Pipe RM Good
Domestic Waste and
Cast iron pipe and PVC pipe RM Good
Ventilation
Domestic Hot Water Two, electric 40-gallon water heaters RM Good
Restroom Fixtures/
Commercial RM Good
breakroom fixtures

8.5. ELECTRICAL

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Underground lines to pad-mounted transformers in
Service Type
underground vault
120/208-Volt, three-phase, four-wire, alternating
Service Size
current. Amperage could not be determined
Electric Meters and Meters along rear elevations in electrical room. Circuit
RM Good
Equipment breaker panels located inside
Copper wire in metallic conduit and Copper wire in
Wiring RM Good
non-metallic sheathed cable.
Emergency generator Not applicable. N/A N/A

No repair costs are recommended. Routine maintenance is recommended over the evaluation period.

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9. OTHER STRUCTURES

Slab on grade, CMU bearing walls with stone veneer,
Drive through RM Good
flat roof with single ply membrane
ATM Kiosk Mounted on Drive thru building RM Good

No repair costs are recommended. Routine maintenance is recommended over the evaluation period.

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10. CERTIFICATION
EMG has completed a Property Condition Assessment (PCA) of the subject property, Wachovia-Mount Carmel,
located at 50 West 3rd Street in Mount Carmel, Northumberland County, Pennsylvania, in order to prepare a
Property Condition Report (PCR).
The PCA was performed at the Client's request using methods and procedures consistent with good commercial and
customary practice conforming to ASTM E2018-01, Standard Guide for Property Condition Assessments: Baseline
Property Condition Assessment Process. In addition, EMG’s reference to the “Client” follows the ASTM guide’s
definition of “User” in all instances pertaining to the published guide. A “User” may include, without limitation, a
purchaser, potential tenant, owner, existing or potential mortgagee, lender, or property manager of the subject
property.
This report has been prepared to assist in the determination of whether to make a loan evidenced by a note (the
“Mortgage Note”) secured by the property referred to in the Report. This Report may be relied upon by: (i) Lehman
Brothers Bank, FSB (“Lehman”), or an affiliate (“Lehman”); (ii) the trustee of a trust created in connection with a
securitization which includes the Mortgage Note or an interest therein; and (iii) any other purchaser or assignee of
the Mortgage Note or an interest therein. This Report may be, for informational purposes only: (i) provided to any
potential purchaser or assignee of the Mortgage Note or an interest therein; (ii) provided to any rating agency, rating
securities which represent a beneficial ownership interest in a trust fund that consists of mortgage loans including
the Mortgage Note or an interest therein; and (iii) referred to, quoted in or included with materials offering for sale
the Mortgage Note or an interest therein. There are no third party beneficiaries (intended or unintended) to this
Report, except as expressly stated herein. This Report speaks only as of its date.
We have performed our services and prepared this Report in accordance with applicable, general accepted
engineering, environmental or appraisal consulting practices. We make no other warranties, either expressed or
implied, as to the character and nature of such services and product.
The purpose for which this report shall be used shall be limited to the use as stated in the contract between the client
and EMG.
The opinions EMG expresses in this report were formed utilizing the degree of skill and care ordinarily exercised by
any prudent architect or engineer in the same community under similar circumstances. EMG assumes no
responsibility or liability for the accuracy of information contained within this report that has been obtained from the
Client or the Client’s representatives, from other interested parties, or from the public domain. The conclusions
presented represent EMG’s professional judgment based on information obtained during the course of this
assignment. EMG’s evaluations, analyses, and opinions are not representations regarding the design integrity,
structural soundness, or actual value of the property. Factual information regarding operations, conditions, and test
data provided by the Client or the Client’s representative has been assumed to be correct and complete. The
conclusions presented within this report are based on the data provided, observations made, and conditions that
existed specifically on the date of the assessment.
EMG certifies that EMG has no undisclosed interest in the subject property, that EMG’s relationship with the Client
is at arms-length, and that EMG’s employment and compensation are not contingent upon the findings or estimated
costs to remedy any noted deficiencies due to deferred maintenance and/or any noted component or system
replacements.

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EMG’s PCA cannot wholly eliminate the uncertainty regarding the presence of physical deficiencies and/or the
performance of a subject property’s building systems. Preparation of a PCR in accordance with ASTM E2018-01 is
intended to reduce, but not eliminate, the uncertainty regarding the potential for component or system failure and to
reduce the potential that such component or system failure may not be initially observed. This PCR was prepared
recognizing the inherent subjective nature of EMG’s opinions as to such issues as workmanship, quality of original
installation, and estimating the remaining useful life of any given component or system. It should be understood
that EMG’s suggested remedy may be determined under time constraints or may be formed without the aid of
engineering calculations, testing, exploratory probing, the removal of materials, or design. Furthermore, there may
be other alternate or more appropriate schemes or methods to remedy the noted physical deficiencies. EMG’s
opinions are generally formed without detailed knowledge from individuals familiar with the performance of noted
components or systems.
Any questions regarding this report should be directed to M. Shane Totten at (800) 733-0660, Extension 6653 or
mstotten@emgcorp.com.
Prepared by: David P. Guse, Field Observer
Reviewed by:
M. Shane Totten
PCR Reviewer
Technical Relationship Manager
mstotten@emgcorp.com

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11. APPENDICES
APPENDIX A: Photographic Record

APPENDIX B: Site Plan
APPENDIX C: Supporting Documentation
APPENDIX D: EMG Accessibility Checklist
APPENDIX E: Acronyms and Out of Scope Items

25
An ISO 9001
Certified Company EMG PHOTOGRAPHIC RECORD
Project No.: 122236 Project Name: Wachovia–Mount Carmel
Photo Front elevation of building Photo Right side elevation of building

#1: #2:
Photo Left side elevation of building Photo Rear elevation of building

#3: #4:
Photo Roof overview Photo Night deposit box

#5: #6:
CORPORATE HEADQUARTERS 11011 McCORMICK ROAD HUNT VALLEY, MARYLAND 21031 800 733 0660 FAX 410 785 6220
www.emgcorp.com
An ISO 9001
Photo Drive-up teller building with ATM Photo Rear of drive-up building with teller windows
#7: #8:
Photo Parking area Photo Boiler

#9: #10:
Photo Rooftop unit Photo Radiator

#11: #12:
www.emgcorp.com
An ISO 9001
Photo Water heater Photo Circuit breaker panel

#13: #14:
Photo Electric meter Photo Elevator interior

#15: #16:
Photo Elevator equipment Photo Fire alarm panel

#17: #18:
www.emgcorp.com
An ISO 9001
Photo Fire system piping Photo Main lobby

#19: #20:
Photo Teller counter Photo First floor — sitting area

#21: #22:
Photo First floor — office area Photo First floor — office area
#23: #24:
www.emgcorp.com
An ISO 9001
Photo Tenant restroom Photo Second floor — vacant space

#25: #26:
Photo Second floor — vacant space Photo Third floor — vacant space
#27: #28:
Photo Third floor — vacant space Photo Third floor — damaged wall
#29: #30:
www.emgcorp.com
An ISO 9001
Photo Third floor — ceiling Photo Third floor — sagging beam

#31: #32:
Photo Mold in basement elevator equipment room Photo Water seepage — basement elevator
#33: #34: equipment room
Photo Deteriorated asphalt paving

#35:
www.emgcorp.com
R5615421D AFR0001 Gramercy Capital Corporation 11/14/2008 12:18:34
BKAPLUN Rent Roll Operations Page - 1
JPD811 As of 10/31/2008
Company # 03395 Brokerage Territory 5

Property Name 3395 - Mount Carmel Portfolio WACBBD
Address 50 W 3rd St

Building Master ACM 12,182
Lease Lease Lease Tenant Type Of Security Deposit Unit Master Renewal
Property Number Unit Unit Status Number Version Status Tenant Name Address# Lease Required Start Move-In Lease End ACM(RSF) Doc SF Start End
3395 0100 Occupied 1152 1 Active Wachovia Bank, 103329 PRS (Adj 9/22/2004 9/22/2004 9/30/2024 3,622 10/1/2024 9/30/2029
National Assoc. Recovery)
10/1/2029 9/30/2034
10/1/2034 9/30/2039
10/1/2039 9/30/2044
10/1/2044 9/30/2049
10/1/2049 9/30/2054
Current Monthly Recurring Billing:
Begin Date End Date Bill Code Description Amount Annual PSF
1/1/2008 9/30/2024 OPFW AFR Other OE OF WACH 4,034.80 13.37
9/22/2004 9/30/2009 RFIW AFR Rent Financials WACH 1,795.91 5.95
Total for Unit 5,830.71 19.32
Future Rent Bumps:
Begin Date End Date Bill Code Description Amount Annual PSF
3395 0110 Vacant 798
3395 0200 Vacant 3,264
3395 0300 Vacant 4,498
Total Monthly Recurring Billing:

OPFW AFR Other OE OF WACH 4,034.80
RFIW AFR Rent Financials WACH 1,795.91
Grand Total Monthly Billing: [ 03395 ] 5,830.71
JPD811 As of 10/31/2008
Totals Company [ 03395 ] Total Unit ACM Occupied 3,622
Total Unit ACM Vacant 8,560
Total Doc SF 0
Total Building ACM 12,182
Percentage Occupied 29.73 %
Percentage Vacant 70.27 %
JPD811 As of 10/31/2008
Grand Totals:
Total Unit ACM Occupied 3,622
Total Unit ACM Vacant 8,560
Total Doc SF 0
Total Building ACM 12,182
Percentage Occupied 29.73 %
Percentage Vacant 70.27 %

Marketing Package For 50 West Third Street, Mount Carmel PA

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Marketing Package For 50 West Third Street, Mount Carmel PA

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PROPERTY INFORMATION PACKAGE

PCA (PROPERTY CONDITION ASSEMENT)

Mount Carmel Office

IN A SELF-CONTAINED APPRAISAL REPORT

As of June 17, 2004

C&W File ID: 04-9157-11

Mr. Yaniv Blumenfeld

Re: Complete Appraisal of Real Property

C&W File ID: 04-9157-11

Dear Mr. Blumenfeld:

FIVE HUNDRED FIFTY THOUSAND DOLLARS

Daniel C. Rudderow Gerald B. McNamara, MAI

Common Property Name: Mount Carmel Office

Current Property Taxes

Highest and Best Use

Site & Improvements

Sales Comparison Approach:

Income Capitalization Approach

Discounted Cash Flow

Reconciled Value: $550,000

FINAL VALUE CONCLUSION

FINAL VALUE CONCLUSION

INSURABLE VALUE CONCLUSION $2,000,000

Extraordinary Assumptions and Hypothetical Conditions

Front elevation of subject property

Additional view of subject property

View depicting subject’s parking lot

View depicting first floor Wachovia space

View depicting second floor office space

View depicting third floor shell space

Easterly view along West 3rd Street

Westerly view along West 3rd Street

Property Ownership and Recent History

Intended Use and Users of the Appraisal

Dates of Inspection and Valuation

Property Rights Appraised

Scope of the Appraisal

Definitions of Value, Interest Appraised and Other Terms

4. Payment is made in terms of cash in US dollars or in terms of financial

“As Dark” Value

Fee Simple Estate

Leased Fee Estate

Exposure Time and Marketing Time

Cultural, Educational, Recreational Resources

Nearby and Adjacent Uses

Local Area Characteristics

Special Hazards or Adverse Influences

Rental Rates and Terms

Tenant Improvement Costs

The Subject Property

Location: 50 West 3rd Street

Americans With Disabilities Act

PROPERTY TAX DATA (2004/2005)

Building Area ( SF ) 14,000

Definition Of Highest And Best Use

Highest And Best Use Criteria

Financial Feasibility and Maximal Productivity

Highest and Best Use of Site As Though Vacant

Highest and Best Use of Property As Improved

Sales Comparison Approach

ncome Capitalization Approach

Discussion of Comparable Sales

Comparable Sale No. 1